Mad Money 09/29/26 | Audio Only

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 Kramer. Welcome to Mad Money. Welcome to Kramer friends. I'm just trying to make some money. My job is not just entertain, but do some teaching here. So call me 18003 CBC. Tweet me at Jim Kramer. Wall Street is losing the battle of the narrative and all sorts of stocks might end up getting hurt. Heaven knows this market has enough problems with this seemingly endless increase in long-term bond yields. Today, a real surprise given that oil actually fell. Things got real ugly in the stock market for plunging oil helped us rebound from our lows. Dow finishing off 132 points, S&P falling.17%. NASDAQ only dipping 0.09%. The rate on the 30-year Treasury is the highest in 24 years. Quite a competitor to stocks. Although bond prices did rally from their midday lows as buyers, I think are starting to think we got a lot of weaker data coming in. We might be due for a quick move down in rates. Stocks needed due to the more than 50% of the stocks in the S&P 500 trading below their 200 day moving average, the worst market breath since March. More stocks the S&P 500 have hit 52- week lows I was than highs for nine days in a row. Only 1% of the index is at its 52- week high. 204 stocks are down 20% from their 52- week highs. In other words, over 40% of stocks in the S&P are in a bare market. Then there's the extraordinary story of the pulling of the Aura IPO. That popular health ring that was four times overs subscribed. Not good enough for management which would rather wait for a better moment. They're blaming market conditions, but the NASDAQ 100 is only 1.3% down from its all-time high. Could there be better market conditions? Okay, we have some slowing in the oddest of places. I like to read these Federal Reserve notes on certain key geographies. Today, the Dallas Fed put out a note entitled, quote, growth in Texas service sector activity stalls. End quote. It goes on to say, quote, "The revenue index, a key measure of state service sector conditions, fell eight points to.9 with the near zero reading indicating no change in activity from the prior month." End quote. If it's weak in Texas, you can only guess how bad it might be in the other 49 states. Consumer confidence numbers out today, worse than a dozen years. Yet rates keep rising. Now, I think that could change if oil stays lower or goes much lower. But I recognize that people have been saying that incorrectly ever since the bond selloff began. When I say we're losing the war for the narrative, though, I mean something's changed with the AI contingent and the data center, the greatest growth story of our era. The market's been carried by these themes what for like seems like ages. But now as I look at the seating chart of today's launch with the president with Jensen Wong from the world's largest company, Elon Musk, the world's richest person, Jeff Bezos, founder of Amazon, among so many other wealthy people. I think, oh no, I mean, who's who's going to come out and say, "What a bunch of fat cats feasted off the newly AI unemployed or the oligarchs. They'd kill us for higher earnings per share." Now, a year ago, I would have thought that here are the people who represent the best we have. Now the critics, not me, but the critics are saying, quote, "Here's the people who want to sacrifice your jobs on the cross of higher profits." End quote. 18 months ago, people might have said, "These execs are putting tens of thousands of people to work building data centers. Now we think, how much have they raised our electricity prices? How much water do they desoil? How many talents just got had?" Oh, and of course, there's the worst possible change in narrative. The two most exciting companies in America, Anthropic and Open AI, are now openly admitting that their products aren't safe for society. We're hearing that the document Anthropics putting out about this potential IPO is filled with grizzly caveats like Anthropics might cause mass death or human extinction. The company might present quote existential threats or fundamental destabilization of global systems end quote. Wow, I can't wait to get some sock in that deal. 80 pages of the 261page document are devoted to risks. Meanwhile, OpenAI wants to raise 30 billion at a $ 1.4 4 trillion valuation about 600 billion higher than the last round despite the fact that it's holding back its new iteration chat GBT 6 6.1 because of the risk that it presents yes to society how is this possible simple the culture has turned against these people these products and the proponents have been caught flatfooted they don't know what to say even though there's no empirical evidence whatsoever that I think the jobs are lost because of AI they haven't demonstrated the productivity gains we know that there are plenty of exe now saying that stopping the existential threat is a is a feat that can be done by engineering. Extremely smart people like Jensen Wong, George Kur from crowd, Nikesh Aurora from Palo Alto Networks is with the president today, Tom McKinnon from Octa, they have all offered serious solutions that are drumed out by the AI doomers. It doesn't matter because when the CEO of the most richly valued private company, Anthropic, makes it clear that his business could potentially wipe us all out, hard to salvage. Look, I'm not a doomer. You know, I'm constructive on AI, but the companies have to start telling better stories. Tonight, we have Dina Pal McCormack. She's the president of Meta wanted to demonstrate the positive side. And I FOUND A TOTAL BREATH OF FRESH AIR. MAYBE YOU WILL. Meta is committed to lowering electricity rates where it puts data centers. It works with small businesses to help them grow. It offers bonuses and teachers big ones. It's got videos supporting its claims. It challenges every other hyperscaler to do the same. But are they? Meta's Muse may be the best new tool for scaling in a small business that I've heard of in years. We'll put a farmer on who takes who talks about how his business is growing because of the Meta's you the Muse product. Will anyone listen? How about the existential endgame crisis? when we're all going to die if we find anthropic to the fullest and its agents go rogue. I recognize that there are risks here, but why not some moderation? WHY NOT SAY, "OKAY, LOOK, HECK, quote the Lincoln tunnel scene from Stephen King's The Stand, but also say that they're slowing things down to ensure the product can't backfire and they're real cyber security solutions that could have stopped the big hugging face solution, the the hugging face event that uh the one that Jensen Wong talked about where I think he said it won't happen. It wouldn't have happened if he owned it. Right now, we have a president who says, "Damn, the guard rails full speed ahead." He believes self-p policing is enough. Even as the record of private industry, self policing isn't all that great. To think tobacco, opioids, autos, fossil fuels. The president's big contribution today, he rebranded artificial intelligence is super intelligence. AI goes to SI morally binding. Somehow, I don't think the doomers will now get on board. Can you imagine what happens after the midterms in November, which are looking strong for the Democrats? If the Democrats take the House, you better get used to hearing that the time for the SI oligarchs has coming on. We actually can see congressional witch hunts that may start with today's guest list for lunch. We've look, we've done it before in this country. We could always do it again. Can the narrative still be saved? You can be the judge when you listen to Medina Pal McCormack and wonder what would happen if the rest of the industry would follow her lead. If we lose the narrative, if the war continues, October could be a mighty tough month. And a Democratic sweep won't make the AI, excuse me, SI narrative any better. Here's the bottom line. It didn't have to be this way. It didn't need to become a nightmare of the ultra wealthy extracting their bond. But that's the new narrative, and it's going to be hard to break even if rates are done going higher because the new economic data is at last slowing down. Grant in New Mexico. Grant. >> Good afternoon, Mr. Kramer. Uh, this is Grant from New Mexico and, uh, I'm 65 years old and I live comfortable with my military retirement and I have a goal of making money to pass on to my kids and uh, I have some cash right now that I want to put to work. I started a position uh with Capital One earlier this year and I'm considering either adding to that position now or possibly starting a new position in Bank of New melon. I also owe uh own Goldman Sachs and I'm looking to add to that position uh as it drops down in the mid 800s. Thank you. >> Well, Gen, first of all, thank you for serving and I think you're doing exactly right thing. 65 leaving money for kids that makes a lot of sense. I like all of your ideas. Uh the one that I think is the most down that I think could turn if we get this bond rally that anything could happen is Goldman Sachs. Uh it's come down greatly and I think it's doing incredibly well. I think David Solomon's he's got 4x gains there. If you use total return, which is what I like to use. All right, people. AI companies need to come they got to come clean the narrow. They got to get better. Otherwise, I think we could be looking for a tough October if interest rates keep going higher. Oh, man. Money tonight. AI disrupted the software stocks, but could the consumer stocks be next? I'm explaining my thesis for how the technology could impact the sector, and there's already been some damage. Then, Meta's Muse is taking the world by storm, as you know. And I got an inside look at the real impact of this personal AI agent. Don't miss my sit down with Meta's top brass. And nuclear energy player BWX Technologies just laid out a new long-term strategy. Is it enough to give the stock a boost? because it's been just crushed. I'm finding out with the CEO, so stay with Kramer. >> Don't miss a second of MadMoney. Follow Jim Kramer on X. Have a question? Tweet Kramer #madmentions. Send Jim an email to madmoney@cnbc.com or give us a call at 1800743CNBC. Miss something? Head to madmoney.cnbc.com. How disruptive really are these personal AI agents? Like Meta's newly launched Muse, which of course is now the number one free app on Apple store. I keep hearing that this could be a gamecher because of an idea called consumer inertia. Basically, once people pick a product or a service, they tend to stick with it often out of pure laziness. I'm a victim of it. But what happens when you take the humans out of the equation? Meduse can review all your subscriptions and cancel the ones you don't use enough or you it can do your comparison shopping for you. This might just be the first real AI product that can actually help consumers save money. Ever since Muse launched three weeks ago, the gym stocks have all been hit. That's the gym kind. And those memberships often go unused. Planet Fitness is down more than 18%. Same goes for all sorts of subscriptionbased media outfits. And if these agents can do comparison shopping on their own, do we really need the online travel agencies booking holdings and Expedia down 10% and 3% respectively since Muse launch? Heck, maybe all the aggregators in trouble. I mean that you could include Door Dash, Uber, Lyft, at least judging by the way they're trading. And look, in theory, the death of consumer inertia could apply to almost anything. Do you really love your property and casually insurance plans? Are you just too lazy to comparison shop for new policies every year? Even the banks have been getting hit hardit because muse can search around for the ones that pay the best interest rates and then move your money around. So, how seriously should we take this threat? Like with every AI displacement fear we have dealt with over I don't know years now, I think you need to use common sense, which is in short supply when we think about the consumer rapidly adopting anything as boring as cash sweeps or lightly used websites. For example, the gym stocks haven't even been savage over the past few weeks. But not all gym stocks are created equal. Lifetime Fit is expensive upscale gym with a very engaged membership base. People pay a lot and they go a lot. Those memberships aren't getting cancelled. On the other hand, Planet Fitness, well, let's just say uh membership based. It's less dedicated, which is why the stock's been hit much harder. It is a cheaper alternative. As for the subscription based media businesses, again, it depends on the property. I don't see people using Muse to cancel their New York Times subscription. Hey, but maybe some of the streaming services will run into some turbulence. Online travel stocks, listen, those names have sold off periodically since the launch of Chat GBT based on the same general idea that the bots can easily replace them. So far it hasn't happened and I'm not sure if Muse changes that. In fact, Expedia has already partnered with Muse to help you plan plan your vacation. At the same time, I think Airbnb is mostly insulated from AI competition or s even super super AI or super si and that's not Sports Illustrated. It's easier for an agent to book hotels online than it is for them to comb through rental homes and book directly from the owner. Plus, Airbnb sold off dramatically in the last month to the point where I think the stock's a steal. It may be my absolute fave of the muse casualties. How about the food delivery services? Look, this isn't the first time Door Dash has gotten hit on AI displacement worries. 7 months ago, an alpha called Satrini Research published a doomsday fiction piece about how AI agents would make this business obsolete. The stock got crushed at the time, but then a fabulous comeback. 150 went to 240. As for the banks and brokerages, I find it hard to believe the consumers will be happy to let AI move their money around bankto bank night by night just to get a few extra basis points of yield in their savings. I just don't think people will want to give their bank information to these agents. There could be some friction here, too. Doesn't seem safe to me. So, I'm skeptical about dumping entire groups based on this idea that aentic AI means the death of consumer inertia and companies that benefit from it. Remember when AI was supposed to be an existential threat to enterprise software? Okay, those stocks have been flying for the piss a bunch. They did get hurt, but they've bounced. That said, there would absolutely be real victims here because plenty of companies do benefit from people being too lazy to cancel subscriptions or comparison shop. And Metism Muse is a threat to their business. You won't hear me make a passionate case for SiriusXM companies been in secular decline for years and is further full since the launch of Muse. I'm just asking you to think critically about where these companies stand right now. It feels like some proverbial babies are indeed being thrown out with a bathwater and that often makes for good buying opportunities especially given that the consumer is not as focused as being more productive than say the small business owner. Here's the bottom line. Consumer inertia has been a powerful force at least for my entire life. But agentic AI platforms like Metuse can push back against our inherent laziness. I don't think it'll destroy entire industries but there plenty of companies that could be vulnerable here. Just don't try to paint with too broad a brush. And remember, think about Airbnb. That selloff, I think, is the best of the buying opportunities. Let's go to Adam in Arizona. Adam, >> booyah. Professor Kramer. >> Booyah. What's going on? >> Hey, I'm calling in regarding AMX. I know at the end of their last earnings report in July, you were in favor of a buy position on them. And since then, I know I've taken about a 10% haircut on it. And I was wondering what your position would be on it now. Are you in favor of uh >> I would buy more. Look, American Express is run by Steve Squiry. He has done a remarkable job. Periodically has these selloffs. People worry about credit issues. They haven't had surface. People worried about growth. The growth has been excellent. I think American Express is a great long-term play, but you have to think long term because right now we do not have a good situation with any company that's involved in credit. All right. I don't think personal AI agents like Muse will destroy entire industries. There are plenty of companies that look more vulnerable now and some opportunities much more man ahead including my exclusive with the president of Meta. Then how is BWX technology shifting strategy amid a bottle moment for energy and defense? I'm finding out with the co and of course all your calls rapid fire tonight's edition of the widening round. So stay with Kramer. Earlier this month, Meta Platform sought out Muse, their personal AI agent. It's already been number one on Apple's app store since September 18th. Today, they're expanding it with Muse for small business. Same concept, except it helps business owners automate things on the much more lucrative enterprise side. I think this could be huge for customers and for Meta shareholders. How's it work? Earlier, I got a chance to speak with Dina Pal McCormack. She's Meta's president and vice chairman. Take a look. McCorbick, welcome back to Mad Money. >> Thank you so much, Jim. I'm so delighted to be with you. >> Well, I I'm very excited that you're here, particularly because the number one app for days now has been Muse. Tell me about it and tell me about your involvement. >> Sure. Well, we are so excited about Muse. It is really taking off. As you said, it's the number one downloaded app on the app store. Millions of people have downloaded it and frankly, it is so different than o any other AI product people have used. Usually you're asking the models a question. In this case, Muse is working for you. We like to say Muse is hustling every day and working for the people uh that are uh behind it. And we are seeing so many use cases. People are having fun with Muse. People are planning their kids' birthday parties, booking their travel. It's really just been exciting to see. >> Well, I've always looked at you because maybe because I worked at Goldman as the person's responsible perhaps the most success of the toughest category in America. The one that fails nine times out of 10 small business. How can you be taken advantage of by a small business person? >> Sure. Well, I had the honor of working on a great team at Goldman Sachs that launched 10,000 small businesses. Couldn't be more proud of where it continues to be today. And I'm really proud uh to exclusively on Mad Money uh launch that was great. >> Muse for small business. Uh it is the next iteration of Muse. It's basically allowing small business owners to take the most precious thing they have, their time and to use it on building their business uh uh for the future, not worrying about the back office work. So, it is starting uh customer conversations. Uh it manages cash flow and inventory for small business owners. We're seeing small business owners have it design its website and actually communicate directly with its customers. And so, we're just thrilled. And for us, Jim, we have 200 million small business owners on our platform at Meta. 200 million. And that really means we have connectivity uh with so many of these small business owners that are now going from using our products to operate them to advertise uh their their goods on them on the platform. But now to actually have Muse for small business hustle and work for them every day. Well, look, I have to ask you because uh Met has been a incredibly large position for my charitable trust since it came public. Uh what I need to know is how how Muse makes money for Met for Meta. >> Sure. Well, take a step back. I mean, we are very proud uh and hope that people see that Meta is a great long-term investment. When you think about what we bring to the table, 3.6 billion with a B people are on our platform every single day. 200 million small business owners as I mentioned and we have a core business that as you know is really growing and we're very proud of that and these artificial intelligence products coming out of our MSL lab are only making the core business stronger and so we're really thrilled now you're seeing us grow into these products like Muse and of course we're thinking about monetization uh Muse right now helps a lot of people save money and so we're thinking through as Mark described last week a potential of taking a fee when we help you save money. Uh, and we're already seeing people that have downloaded Muse, uh, are so excited to use it even more. So, the more you use it, we may have opportunities obviously for subscriptions as well. >> Okay. So, you mentioned AI and I've talked with you back and forth about what we think should be done by data centers when they move into town. And you've got a plan that if everybody did it would mean a lot more jobs, a lot more growth for the country. And I just want you to explain it to people because nobody else in your business has it. >> Well, I would say that we have to start again here with the fact that not every community wants a data center, right? We have found partnerships across the country in states uh where we really partner with the local leadership and we have a compact everywhere we go. Not only do we promise to pay for our own electricity, we actually drive electricity costs down. In Richland Parish in Louisiana, a town of 20,000 people, our investment grew the tax surplus revenue so much that every teacher in Richland Parish got a $50,000 bonus. The superintendent, Sheldon Jones, actually recently told me he used to have a hard time attracting teachers to come to Richland Parish. Now, every teacher in the state wants to move there. He's going to end up with the best school district in all of Louisiana and small businesses. Uh it's remarkable. uh when you go into a town with this much of an investment and economic development, you see small businesses doubling their revenue uh and their employee base. >> Okay. So, let's say everyone uh had Muse in in in Richland Parish, but how would they grow their business? What what do you think? How would they save time? >> So, we're seeing uh a lot of small businesses do a unique set of things. Uh I mentioned designing their websites, but they're actually you're you are able uh to tell your muse to go talk to your customers, bring you back the feedback of what they want and implement some of the feedback. Uh obviously we are partnering with Shopify, with Slack, and so we're actually bringing those products on the Muse platform right now. And so small business owners are managing all of their inventory. It alerts them when something is down. And then you can actually have Muse go buy uh what you need to keep your inventory up. So, we're just so excited about Muse for small business. >> Joe, I I want to be sure of something because it's a little confusing to me. Uh, for Muse, my plan was I would go to Amazon and ask it a question about well, show me the best raincoat that is got the highest rating, whatever. Um, but that would be in the world of Amazon. Would it be better to do Muse to maybe even if it separates me from the Amazon world? I'm not being obtuse about this. I mean, I I have fun with Amazon. It's always worked for me. Well, Muse does a lot of what um our product partners. By the way, we're so thrilled to be partnering with Walmart. I mentioned Shopify and others. And frankly, you can use Muse for a lot of those tasks. I used it this weekend. I'm trying to buy my mom a car and I put in exactly what kind of car she wants. I tested the safety. I asked it to go scan every website that sells cars about an hour in her radius in Plano, Texas. It brought me back three of the exact models that I was looking for and found me the cheapest price. So, you can use it for so many different things. But what's different, and this is important, Jim, is it's not just giving you back research or feedback. It's going to go buy that car for my mom. It's actually acting on behalf of what I'm saying. You don't have to go to the dealership. >> Well, she has to go to the dealership. >> She has. But, but the idea is is that complex process transaction. I could do that full transaction. >> And how about entertainment? Oh, well actually this is an interesting thing. Dave and I have six daughters between us. Uh we only every time we want to watch a movie together. >> Senator McCormick of Pennsylvania. >> Yes. Yes. And uh we often argue about what movie we're going to watch. And so I used Muse over the weekend as another example to pull up what are the top hundred movies uh that we should watch and and kind of got a vote going. >> Now I know that there's some people who think that it it it surveils you, but it doesn't do anything that you don't give it. Well, first of all, safety has been paramount both in this product and everything that our AI lab has developed. Mark has made that extremely clear that you can't uh have a product that isn't safe and secure. He even talked about that last week when he said that we delayed the launch by 30 days because we wanted to ensure it was absolutely as bug-free as possible, extremely safe, of course, encrypted, and so we're very proud of how safe it is today. So I'm trying to figure out whether there's a what time is worth. For instance, the calendar is you right. I am my calendar and and if it can organize my calendar in a way that tells me say what the weather's going to be. I I was I came back from Italy. I wanted to know everything. I wanted to know what the what the best way route home. I was just guessing. >> Yeah. >> Right. It ends the guess work. >> Now you can use your muse Jim. You can say tell me what my calendar is. I need you to cancel these three meetings and get other times that work for the people I needed to meet with. uh tell me what the weather is so that I can uh you know know what what to wear. But again, it's acting for you and if you give it permission, it's going to be able to communicate with your team, reschedule meetings, uh bring you the deck that you need for every single meeting. Uh it it really is kind of your uh your friendly assistant. >> Well, I think speaking of a friendly assistant, I want to bring in someone who I is a real life real life. >> Well, before Henry comes in, can I uh can I give you a little surprise? >> Why not? >> Okay, here we go. These are Meta glasses. Custom Meta glasses for you. >> Fly Eagles fly. And you know what? I can't thank you enough. I last time I saw Senator McCormick was at an Eagles game, but it's not whether whether he's a Pittsburgh fan or >> Well, I'm going to no comment on that. He loves all Pennsylvania teams. He did grow up as a Steelers fan. >> Yes, he did. >> But we love all Pennsylvania teams. Yes. We're so excited to give you those custom glasses. >> Oh, that's sensational. Well, I'm glad and I will wear them. I was also hoping you would give me but I'm going to buy the ones six the Mark was correct. One out of six people have a hearing problem. I blew up my ear long time ago and I need to have glasses to be able to do it and I know you've got that. >> We will get you another pair. Uh these >> No, I mean I want to get them fitted. >> Oh yes. >> People are embarrassed. I'm not embarrassed. I have it. I wear it. I blew up my eardrum years ago and I'm just sick and tired of being embarrassed. >> Sure. Well, why should you be? One in six Americans have hearing loss. But it is nice to have glasses uh sometimes if you don't want to wear a hearing aid and you kind of you're able to be in the world. >> Absolutely. Absolutely. Well, why don't you introduce your friend and tell me >> so excited. Um Henry is uh actually has been working with us for years um and our small business working group to kind of give us advice on products and how to make them better. And uh we're so delighted that he is one of the first people in the country that used Muse. Um maybe tell Jim and everyone about your business. This is Henry Bennett who is from uh from Delaware a couple hours below Philadelphia and has got a a thriving what sixth generation peach business. >> Yes. Thank you uh Jim for having me. Thank you Dana for having me here. Um I'm Henry. I'm with Bennett Orchards. I'm a sixth generation farmer and we sustainably grow peaches, blueberries, and nectarines in Frankfurt, Delaware, which is about 7 milesi from the coast. >> Okay. So I mean look, I my first reaction when I heard that a farmer go, "Oh, come on. A farmer I mean I understand I was a restaurant. I could have used this thing before we had to sell our restaurants." But how's a former use? >> Well, when I first started beta testing this product, um I gave it, you know, I asked it to revise our website. Here's our website. I'd like to give it a refresh. Um it did that within a matter of minutes. I then went on to give it very more complex task. Um as we've seen along the east coast this spring, um drastic temperatures and spring uh during the spring have wiped out entire crops. So, I uh input thousands of Excel logs and it was actually able to compile graphs of frost mitigation methods that I was able to share with industry colleagues and stakeholders across the Mid-Atlantic. Uh allowing us to see which type of frost mitigation technologies to incorporate moving forward to prevent these types of issues. >> So, uh grow the business, uh save more money, uh hire more people, what what what where does it take you? >> Well, first and foremost, I'm a farmer. My job is to grow food that we distribute within our community. Um, my job's not to do back of the house office work and it seems like there's a lot more paperwork that it comes along with my job every year. Uh, Muse handles things in a matter of minutes that used to take me weeks to do so that I can get back out in the field, do what I love, which is growing more and more food for our community. Um, more time that I'm spending in the field, less time I'm spending in the office is more fruit that's grown for our nation. >> And how much time have you gained because to do actual work because of Muse? Every day I find something that I can delegate to Muse. So I'm gaining hours back every day. U it's hard to quantify at this point because I've only been using it about a month, but uh at least two to four hours a week. Um and that's just the beginning. >> Dean, I know you as someone who I believe and I've said this to to Lloyd Blankfine at Goldman. You've created more jobs than anybody else in America. I No, I know. I believe that. That's one of the reasons I' I've always respected you. >> Now I really wish my girls were watching this. >> Well, they ought to. Um, and when you're listening to to what Henry say, how how in common is that with other the small the thousands of small businesses you can tell? >> Honestly, we keep hearing that it's just saving me. Even if you save me an hour a day, that helps my business grow so much. And this this this idea that he Henry is not in the back office. He's literally in the field on the farm is transforming his business because he's really able to grow products better to um deal with customers and we are hearing that from business after business that you know they're gaining one two three hours back every single day and time is money and time is value that is very hard to even imagine uh how much it's going to help them. >> Okay. So, I listen to you and I you we watch the road to Paris. We listen listen what Henry saying. Uh you ask the average American right now about AI. Uh I think they're thinking not good for our country, not good for people uh getting laid off, whatever. I mean, what where's this weird disconnect between the things that you guys say and when when I mention people I like AI and they look at me like, oh yeah, well, sure, some rich joker says that they like AI. >> Yeah. You know, I think with any new TRA technology of this scale and scope, there is going to be a level of concern. I mean, this is the most transformative technology of humankind basically and it's going very fast. And so, I understand that even my own daughters, you know, are anxious about what this will mean for their future. And I think we do need to do a better job, Jim, honestly, about talking about the fact that super intelligence for human beings is going to transform their lives. So many people will be able to reach their potential in a way that we've never seen before uh if we democratize super intelligence and everyone has access to these products to these models. I mean I know you're going to become a PhD in English literature using Muse. Uh but seriously the access to education, health care, medical advances I I believe as Mark Zuckerberg has said many times over the future is for everyone but the future will only be for everyone if we really share this technology. I want to leave it at that because it's a positive constructive constructive moment that's really important for your company, your company, our franchise, and yes, the nation. That's Dina Pal McCormack, president and vice chairman of Meta Technologies and Henry Bennett of Bennett Orchards. Thank you so much. >> Thank you, Jim. >> Thank you. >> Coming up, is BWX Technologies the stock to own in our energy hungry world? Kramer's asking the top brass next. Here's a bit of a puzzle. What the heck happened to the stock of BWX Technologies? Fence contractor nuclear energy play makes the reactors powering our submarines and aircraft carriers. After a huge multi-year run, the stock's been clobbered. It's down 27% over the past three months. Part because the latest quarter came in somewhat weaker than expected when they reported on August 3rd. I could say it's only one or two lines. All the rest were good. Today though, the company held a very good analyst meeting. Laid out some really bullish long-term targets for 2030. We got to discuss that. Can the stock get its groove back? Let's check in with Rex Jevid. He's the president and CEO of BWX Technologies to find out. Rex, welcome back to the show. >> Thank you. Glad to be back. >> I'm glad you're here in person because I want you to lay out what you said in the investor day from now to 2030 because I want people to think longer than the next three months. >> Yeah, sure. So, one of the things that we talked about, Jim, is that we're going through uh a super cycle in demand for nuclear power. We believe that we're in the beginnings of that. What feels like a drip right now, I think it'll eventually be a flood for commercial power u because of all the demand that we see um on on the electrical grid. And and we've talked about this before, but it starts with the decarbonization of the grid, >> right? Nuclear is is the solution for clean base load power, electrification of everything, transportation, industrial processes, but then of course AI brings this new signal to electricity demand and we feel like nuclear is going to be the solution for that. So long multi-year run we see ahead. Well, do you think it's possible that your company, which is a solid company, it's been around for a long time, got caught up in some sort of like a almost a mania about nuclear power and it's deflating. Uh, but it doesn't make your business any worse. I thought that the stuff that you laid out that all the goals you had and the quarter, we're very strong. >> No, thank you. Our, you know, I I don't think our stock class price reflects any any issues around company performance. We've been operating really well. We've been driving up margin this year. Our growth has been spectacular. It's it's 19% year-over-year. Um our three-year growth kagger that we uh that we that we targeted at the last investor day was mid mids singledigit revenue growth. We delivered 15% as it turns out of which 8 and a half% is organic. So the growth has been the growth has been spectacular. margins have been good and our backlog um our backlog notably has gone from 4 billion from our last investor day 32 months ago to 8.4 billion today. So we're seeing demand in all parts of the business converting that into backlog and that sets us up for a really good growth trajectory all the way out to 2030. So we're very very confident about the performance of the business. I'm very proud of the performance of the business. >> Okay. So what percentage of that is uh Navy? What percent is government? what is percent of of what I think most people want to see which is what the president was talking about I can call it super intelligence I can call it data center but I know that is the inflection >> right so if you break down our business by segment it's about still about 70% national security uh and >> people want that that's very important because that's going up I don't want people to think that well I mean your navy sometimes be flat but I mean the general sec it's still secular growth from the government >> oh it's pretty incredible the way that growth is expressing in so many different dimensions. I mean, it starts with naval nuclear propulsion recapitalization of the nuclear triad, but we've got a great franchise in special nuclear materials that that's unique for us because of our category 1 licenses. And so, we've got decades of growth uh ahead there on the government side of the business. 30% of the business is commercial, but that's the fastest growing business. You look at that mix. 5 years ago, it was 8020. uh and uh in fact when we spun as a public company 11 years ago that was about $115 million business it's a billion1 today so we're seeing growth all over the place so let me ask you I I I periodically hear new uh commitments to nuclear and yet I I've yet to see someone finish a nuclear power plant in time and and people say you know what that's darn good and let's put up some more >> well um so I we haven't built nuclear plants in a long in the US. We lost the tech. I mean, some of these guys still know how to do it, right? >> I think so. I mean, but the nuclear industry, of course, kind of hit the pause button for about 30 years now. The exception to that is BWXT because because we delivered >> so far 425 of these exquisite small module reactors for the nuclear Navy. So, we kind of never went away. Our supply chain was still there. We were delivering reactors, two or three reactors a year to the nuclear navy. And so so we carried on with that. Now we're starting to see new nuclear builds in North America. There is the small modular reactor project up at the Darlington site in southern Ontario that that that Ontario Power Generation is doing. Uh Terap Power is working on a plant in Wyoming. Obviously TVA is preparing at Clinch River. In fact, they got their construction permit today. >> So we're seeing the the green shoots of growth. Now, what I would say about it is there's a lot of capital that chases nuclear technology, but I think you hit the nail on the head. What we need to do is get delivery right because capital cost and cost of capital really drive the nuclear investment decision. So, we've got to deliver those those reactors more quickly, more economically, and make the business case better. And we're seeing innovation in the delivery side of it right now. Well, that's why I wanted people to think about 2030 because no one ever said this technology is just a flick of switch. But no one's ever said it is it isn't the cleanest technology out there. The people that have have decommissioned every country regrets it. And I think that we're going to be do we'll be other than China the leader and it'll be your company that's doing most of it. >> I hope so. I mean we're facing the market as a merchant supplier. So we're involved with every single aspect of reactor technology at grid scale and we have our own technologies for micro reactors. We participate across the full value chain from the from the fuel cycle on the front end to disposal and and management of complex nuclear waist streams on the back end. So I've often said that we're betting on the race here, not on the horse. >> Very good. >> And so u so we like where this where this market is and we expect it to grow and and we hope investors come along with us. >> Okay. Now I want everyone to look at the deck. It's very comprehensive. There's a lot of great charts. You'll understand what part's navy, what parts government, and what parts commercial, where the excitement is, where the steadiness is, and it's quite impressive. That's Rex Jevidin. He's the president CEO of BWX Technologies, which is the only nuclear power stock that I endorse in my spec. It is time for the light Bye-bye sell just because I don't know the course stop that time my staff prepares the graphics on the fly when you play just hear the sound and then THE LIGHTNING ROUND IS OVER ARE YOU READY to tell the right John >> hey love the show Jim >> A thank you John >> yeah what do you think of the stock FRMI >> I wish it I wish it it should never have come public frankly it it's the kind of thing that got that got caught up in the mania it came public lost people a lot of Don't let it lose any more money for people. Let's go to Ken in Florida. Ken, >> hi Jim. This is Ken in Miami. I want to thank you for all you've done for us home gamers over the decades. >> Thank you. That's the goal. >> This uh $ 36 billion uh market cap uh uh South Florida company always has had consistent high growth and a strong balance sheet to justify its high PE multiple. Since its high of 377 on August 6th, the stock has fallen 16%. Any thoughts about Haiko? >> Well, I like Haiko, but do I ever hate the aerospace sector? I mean, I am suffering with suffering with the with the Boeing for my travel trust. I don't want to put anybody anywhere near anything aerospace right now. We have to have oil down. Let's go to Stephanie in New Jersey. Stephanie, >> thank you Jim for taking my call. >> Of course, Stephanie. Um, I want to first tell you I read your book and I loved it. I joined the investing club. >> Yes. >> And you you inspired me to open an account and start investing and I am beating the S&P 500. So, thank you. >> All right. All right. That's great. Remember, we want to do both. We're not we're not purists. We want we want index funding on individual stocks. The index people don't want you in any individual stocks because they don't think that you know what you're doing. You obviously do. Let's go to work. >> Yeah. So, I have a stock, one stock that's down 40% this year, and I don't know if I should buy, sell, or hold. Um, QXO Inc. >> Brad Jacobs. You know, Brad Jacobs, I am very surprised this thing, look, it's a housing play. It's a roofing play. I can't go against Brad. He's been too successful. But, man, it has been, what can I say? Let's go to John in New York. John, >> Jimmy Chill, how are you? long time caller and listener buddy. >> Glad to have you on. What's going on? >> Thank you much. Looking at a market cap of just about 13 billion daily volume over seven 70 million. What do you think about the company Grab? >> Man, I don't know what's going to turn that thing around. Uh at $3 stocks do stop at zero. That's one of the best things I know about common stocks. And that, ladies and gentlemen, inclusion of the lightning round. >> The lightning round is sponsored by Charles Schwab. Sometimes it just hits you as you're talking, as you're asking questions that the real story is different from what you thought. And that's how I feel after speaking with Meta's Dina Pal McCormick and Henry Bennett, that Delaware peach farmer. For years, the strength of Meta was the popularity of Facebook, Instagram, and reels with regular people, which brings in endless revenue. There's just one problem. Main Street may love Meta's product, but Wall Street has a distaste for anything that relies on the consumer, especially advertising, because that's known as a very cyclical business, and that is or has been Meta's bread and butter. Instead, Wall Street loves the enterprise. That's why I got so excited about this Metamuse for small business platform. They can tap a giant universe of 200 million small business that will be heavy users who will pay for Muse. That's because we heard earlier, Muse makes you more productive, could save you 9 weeks worth of work, allows you to hire more, allows the company to scale, and of course make more money. Consumers may love it, but they may not pay much for it. We know from looking at Apple App Store numbers that Muse is already a hit with consumer, but from Wall Street's perspective, small business is where the money is. Enterprise customers keep coming back. That makes me think that Meta is changing right in front of our eyes. It's going from a cyclical company based on ads to a partially secular grower with more exposure to enhancing small business. Meta is now joining the colleagues in Magnificent 7 that have both enterprise and consumer sides. So as it scales price earnings multiple, what I call the secret sauce in how to make money in any market, the multiple will grow with it. Wall Street's always willing to pay a higher multiple for enterprise business and they will do so with Meta. Long time ago, I learned that small businesses is the engine of the economy. Now, most small businesses fail. I think Muse will lower the failure rate. Most small business people don't know how to scale their operations. Muse can change that. Most small business people don't have time to learn the rules. The government, any government can wipe you out overnight if you don't know the lay of the land. I learned that pretty much every month. Painfully in the decade my wife owned Bar Sig Miguel in Brooklyn. For she had to give it up to own a liquor company plus 40. We didn't have Muse back then. It would have saved us so much more money at the bar. Now management uses uh Foss4 uses it every day. Sticky repeat business scale the enterprise. In other words, keep buying the stock of Meta. With this small business kicker, I think you can go a lot higher even as it has already had a remarkable run. I'd like to say as always a bull market summary. I promise I find just for you right here mid money. I'm Jim Kramer. I'll see you tomorrow. >> 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 or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full MadMoney disclaimer, please visit cnbc.com/madmoney disclaimer.