Mad Money 03/06/26 | Audio Only

New York next week. Oh, can't wait. Boeing have been scaling out of that one. It's been on a decline and I thought with the news out today, it should have bounced higher. I'm out of the name.

Stock picks and weather forecast. Thanks for watching.

Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramerica. Other people want to make friends. I'm just trying to save you some money. My job is not just to entertain, but to educate, to explain. So, call me 1-800-743-CNBC. Tweet me at @JimCramer.

Oil will come back down. I don't know if it'll be this weekend, but at some point, it's going to pull back because there's just way too much of it. That's why stocks which started the day off horrendously as oil shot up into the 90s managed to bounce off their lows even if the ultimate session was ugly with the Dow sinking 453 points, shedding 1.33%, and the Nasdaq falling 1.59%.

Wall Street's convinced that this move in oil must be ephemeral, or I have to tell you those numbers would be much, much lower. But with this war, strange things can happen. Iran still seems armed to the teeth, with muscle, with missiles, with drones, and they want to shut down the entire Middle East petroleum complex. That's really what's going on here. It's why oil skyrocketed. It's something that Iran can still do, perhaps with an eye toward, they think at least, pressuring President Trump to stop prosecuting the war. Now, we obviously don't know how long the war will last though, and oil has a mind of its own. As long as prices stay elevated, any other asset class could be standing on quicksand. When oil goes up, stocks go down. Period. End of story.

So, let's start our game plan for next week with a recognition that oil's rally was so easy, it just burst right through the 90s, that it wouldn't shock me if it went even higher, especially if the shipping companies refused to go through the Strait of Hormuz, even after being offered insurance.

You know what? The captains may be willing to risk going through that bottleneck, insuring the cargo, but letting the crew take the brunt of an Iranian attack seems wrong to me. I don't know why. I don't know how many people are going to take that deal.

Now, I accept the stranglehold Iran has on the price of oil. If the president were to open the Strategic Petroleum Reserve for a few weeks, then oil could be crushed. Unfortunately, the reserve's at half capacity right now. Maybe not enough to last through the entire conflict if President Trump keeps insisting on Iran's unconditional surrender.

Presumably, unless something truly horrific happens over the weekend though, we'll be back dealing with stocks, looking for those that might be immune to the pain from higher oil at the pump. So, let's start with one that I think is... Let's start with Casey's, the shorthand for the 2,900-store chain that lives in so many small towns in America. By the way, the breakfast pizza is a fan fave. We tried it. We liked it here. Casey sells gasoline, too. So someone may want to spin that as negative, but I think the crowd will love it when it reports after the close. It's the best chain of stores that nobody on Wall Street has ever heard of or, of course, gone to.

Tuesday morning, we get results from Kohl's. And this earnings season's been kind to almost all the retailers. Kohl's, with new management, will most likely be treated well. I like to buy inexpensive quality. And we got some real great numbers from the last few weeks from solid discounters like Burlington. Boy, that was really good. Ross Stores was even better. TJX was strong. I don't know if we actually need Kohl's, but it could be the beginning of a rebuild that's worth watching after the close.

Wow, big one. Oracle reports. This one's a total pain point. Ever since it decided to go all in on building data centers, the plan was hatched back when the stock was in the low 100s. Then it soared to $345 as we learned that Oracle had huge orders to build data centers all over the country, including a gargantuan one from OpenAI. But when Oracle took on a gigantic amount of debt to do the buildout, investors started getting worried and the stock's now been more than cut in half since then. It's no exaggeration to say that Oracle's the most important company reporting next week. We need to hear that the data center buildout's going well and the company's starting to make money, or maybe soon. I don't know. I wouldn't mind if they sold that Cerner, that medical records business they bought, even if they got less money than they paid for it.

Hey, you know what? Hey, why not get the full skinny on what's really going on at that Oracle mega data center place in Abilene, Texas, that they're doing with OpenAI? A lot of chatter about how OpenAI may not want to do more at that site. I don't know. I want to find out more. I want Oracle to tell me, because I've got to tell you, the story that appeared this afternoon that there might be trouble did knock down all the hyperscalers and all the semis in a bleeding last hour of trading. I don't know, may not be true.

We also hear from AeroVironment, and this one's timely. We have lots of defense stocks just going higher and higher, led by Lockheed Martin. That's big hardware, by the way. I like RTX too. If you want drones though, and I know many of you do, you buy the stock of AeroVironment. It's a longtime Cramer fave. But things don't seem right here. November of 2024, this company announced a deal to acquire Blue Halo for $4.1 billion to exploit that company's counter-drone technology as well as its satellite abilities. Blue Halo has a big contract with the Pentagon for satellite work. The stock was pummeled recently though when we heard that the contract will be rebid.

Now we got to find out what's really happening here. I think AeroVironment has terrific technology, but we need to learn more about Blue Halo because without that contract, maybe these guys paid too much for the acquisition and the stock is overvalued.

I want to know one other thought. Howmet, terrific aerospace parts company, gives a presentation about its technology on Tuesday. It seems that almost every time this company speaks, its stock jumps. We joke about how much Howmet is loved. We even go as far as to give it a nickname, for Howmet, 'How I Met Your Mother.' I think you can own it with a little risk and a lot of love right here. It's just in the sweet spot.

Wednesday. All right. Consumer Price Index. I'm wondering if we'll just ignore it because of the oil, the run in oil. I hope not, because some of the key components, insurance, food, rent, they're going lower. It's vital that inflation at least give the appearance that it could go down, or else the Federal Reserve will struggle to justify more rate cuts because of what's happened with oil. I think the economy and the market both need lower rates. Look at that, today's lackluster employment report. A lower CPI will allow incoming Fed chief Kevin Warsh to convince voting members that they need to keep cutting rates. I bet we get a soft number. I just don't know if it will matter.

The food stocks have been horrendous of late. One of the worst is Campbell, which has salty snacks, baked goods, and of course soups. This darn thing is only worth $7.7 billion now, despite that acquisition of Rao's, which has been a home run for the company. That 6% yield looks real safe. But the issue, the real sticking point, is that Campbell's earnings are suspected to be down in 2026. And money managers don't like to buy the stocks of companies that are going to have down years. Plain and simple.

Thursday, we get reports from three that I like: Dick's Sporting Goods, Dollar General, and Ulta Beauty. Dick's is on a big winning streak when it comes to the numbers, but not the stock. All this week though, if a retailer reported a good number, its stock was rewarded. So maybe Dick's can finally blast off. For the same reason, I think you can buy both Dollar General and Ulta Beauty. Unless oil makes a quick run to 120, these fit the description of what's working here: bargain offerings. Real bargains, they have them. As long as the price of crude doesn't go insane, it will matter and these will go higher.

Finally, on Friday, we got the most important figures for the week. It's called the Personal Consumption Expenditures data, PCE, which is the Fed's preferred way to measure inflation. Again, we're not able to predict oil, but ex-oil, this one should go for the bulls.

Here's the bottom line. It is tough to make judgments about the market when we don't have a clear sense of where this war with Iran is headed and what's going to happen in oil. But we can still make judgments about individual companies. To me, what's amazing is that oil did skyrocket 35% in one week. By the way, that was the most in one week ever. And yet, the market didn't crater. Maybe that, and not the oil premium, is the real takeaway. Let's take calls. Let's go to Bobby in North Carolina. Bobby,

Bobby from North Carolina.

All right. It's a great question. Now, here's the issue. It just moved. It moved huge. And now it's pulling back a little. And I think that you got to let it pull back a little bit more if you want to get involved because it looks like this stock has had a short-term peak. Both Jeff Marks and I think this company is sensational. We're not selling. We want to own it right into the split, but be aware it's had a big run and now those industrials start to come down a little. You got a better price and then you take it. Let's go to Sandy in Virginia. Sandy,

Thank you, Sandy. I appreciate it.

Well, you know, I've got to tell you, Sandy, the group has gotten very out of favor all of a sudden. It always gets out of favor when the price of the pump goes really high. And that's what this is associated with. The actual Chipotle Mexican Grill is doing better. And at 30 times earnings, Scott PR really started to, I think, have a positive impact. I want to buy some here, not sell some. I think it's the right place to be.

All right. It's hard, and thank you for the kind words. It's hard to make predictions about the broader market right now because of oil, but we can always give our estimates on individual companies and we must think. Volatility has been the name of the game in this market, but global turmoil can lead investors to make moves they may regret. So, well, here's what we're going to do. We're going to open the phone lines and give Cramerics like you the advice you need to protect your portfolio. Then, it's lights out and away we go for the new F1 season. But what about for the stock behind the race? I'm taking a closer look at one that I hardly ever talk about, Liberty Media Formula 1 itself, and giving you my take. And are investors finally buying into Marvell's big promises? I'm digging deeper into the post-earnings reaction. So stay with Cramer.

Don't miss a second of Mad Money. Follow Jim Cramer on X. Have a question? Tweet Cramer. #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.

Oh boy, I got to tell you, after a week like this, like the one we just had, where the markets are swinging up and down for a host of reasons, of course, they end up down, some investors can be tempted to make big decisions out of stress or even panic, which by the way is not a strategy. So that's why tonight we're doing something different. We're going to open the phone lines and hear directly from you, Cramerics. I know you got questions. Hopefully we can get answers. You know, I got to tell you also this was a week where I felt that it was very unreal, very disconnected to the companies because of the news flow. So, let's go to work on both the companies and the market. Now, the first caller up, let's go to Michael in Florida. Michael,

Thank you, buddy. Where are we going?

Let me go to work on this, Michael. Let me go to work on this because I got to tell you something. You did hit the key stock in this entire market. And that is Chevron. Why? Because Mike Wirth is the best at what he does. You got Mike Wirth at the helm. You got the best assets. You got a great yield. You got a rock-solid balance sheet. But you now have a high stock price. This has just had a parabolic move. Meaning it's a move that goes like this, if you were looking at my hand. And what do you do with a parabolic move? You either sell half or sell a quarter. And that's what you're going to do Monday. That is not a criticism of Mike and Chevron. It's what I always advise and it's almost always right. Sell half or a quarter. The stock has moved too high, too quickly. Jeff in California. Jeff,

I am well. How about you?

You know, I said the same thing. Thank you, Jeff, for calling. To Kevin Hassett, the absolutely terrific fellow. I like him. I mean, I know these are political guys, so I tend not to praise him, but I like gentlemen. No matter which side, he's a gentleman. And we were trying to hash this out today. I mean, hash it out. No spin. I am a big believer that these jobs, that some of them being lost in particular industries, were indeed what I call secular job loss, meaning that they're lost because of artificial intelligence. Because artificial intelligence is doing some jobs better than people can do. And I was saying to Kevin, I hope we have something ready for these people who are laid off. He didn't think necessarily that things, you know, he was talking about productivity and how great for the people who are staying at the job. But I've got to tell you, Jeff, this was it. This was the first time I saw it in the numbers. And as far as I'm concerned, it's the first of many. And it is indeed worrisome. But it can give the Fed a reason to cut rates. And you know, that's good for stocks. How about Chris in California, please? Chris,

Of course. Start out with my question.

Of course. Of course.

All right. Well, first of all, those stocks are amazing. Really, really terrific. Well done. Well played. But I tell you, I mean, I don't want to look... Look, it's a how-to book. I'm not hyping myself. Just, it's a good how-to book. Well, I did dedicate it to my folks. And I've got a terrific chapter which is just about eight income producers with growth that are for people like you, literally. And I mean, I can't beat what I already wrote. They took a long time to write that chapter. No one really talks about the stuff that I wrote. I don't care. I know that those are the stocks. And that's what people who are in your situation, 50s, 60s, 70s, 80s, that's the list of stocks. That's what I would go for. That's what I'm steering you toward. Alex in Florida. Alex,

Oh, great to have you on board.

Thank you.

Um, this is really hard. It's a really speculative stock and so I'm just going to be really blunt and I'm going to tell you I want you to sell it. Just sell it. Okay? I just don't like it. And I always feel so hard. I know that sounds very harsh, but I think it's a loser. Was a loser from the day it came public. Even as I like the people who are involved. Ouch. Hey, how about we go to Pamela in Connecticut? I hope a little more upbeat. Pamela,

Yes.

So, my question... I've listened to you for years and watched and learned and made a bunch of money. So, thank you.

Oh, I'm so glad. That's the goal. Look, I make no bones about it. That's what it's about. I'm not trying to rewrite things. I'm not trying to create history. I'm just trying to help you make some money. Let's go to work.

Okay, look, this is a very tough question and it usually isn't because they're no longer hedges. They turn out to be better than the stocks. I am going to be point blank about this. For the last 30 years, I have been what is called a gold bug. I like gold. I do not like silver. It's got too much industrial and I really don't like copper. I think it's going to be replaced by fiber. But gold, I think up to 10% of gold is just fine. That's what I would shoot for. Anything more than that and I think you're making too big a bet anyway. But thank you for the take. These callers are great and I like the upbeat nature of it. I feel bad about Fermi. Sometimes I just want to say sure, buy, but you know who I am. I can't do that game. Anyway, thanks to all our callers and Mad Money is back after the break.

Coming up, with the green flag set to drop on a new Formula 1 season, is now the time to start a position in the stock behind the world's premier motorsport? Cramer's all revved up next.

Tomorrow night, a new season of Formula 1 racing kicks off at the Australian Grand Prix. And I love talking about any chance to give you the story about the business of Formula 1 because this is a publicly traded company. Formula 1 Group, a subsidiary of Liberty Media alongside the Atlanta Braves and a host of other sports entertainment businesses. Liberty Media has an infamously complex corporate structure. Something that has kept me from being as enthusiastic as I should be or even talking about it to you. But they've historically had tracking stocks for their subsidiaries that give you something like a pure play on niche businesses like this one. Liberty Formula 1 represents ownership of the Formula 1 auto racing league, MotoGP for Grand Prix motorcycle racing, and a bunch of minority investments in a grab bag of different things.

If you want to own this one, there are three classes of stock that I'm going to recommend. The Series C, as in Charlie, shares which trade under this ticker FWONK. I call it Funk because they have the most liquidity. These Liberty Formula 1 shares began trading about two and a half years ago in August of 2023. And for a while, this was an excellent growth stock. Once it found its footing in late 2023, it rallied from the low 60s to a high of 109 in early October of last year. Since then though, the stock's pulled back 23% to $83 and change. And you know what? At $83 and change, I think it's a terrific buying opportunity.

Why? Okay, let's start with the numbers. In late February, Formula 1 reported a scorching quarter. For Formula 1 racing itself, they had 14% revenue growth, 20% growth in operating income before depreciation and amortization, which is their preferred profitability metric. Fan attendance up 4% year-over-year. Live viewership up 21%. For the broader business, the numbers are even better. Revenue grew 23% year-over-year and adjusted operating income before depreciation and amortization that jumped 38%. Then again, that's not entirely organic, though. Last year, Formula 1 acquired that MotoGP I mentioned, giving them a big motorcycle racing business. I think the numbers look pretty darn good here, though, and I trust Liberty Media's judgment when it comes to acquisitions.

Last year's results also reflect some one-time boost from the release of F1 the movie with Brad Pitt. Either way though, this is a growth business. Sponsorship revenue grew thanks to revenue from new sponsors, contractual increases from existing sponsors, and an uptick in digital advertising revenue. Race promotion revenue is up too, thanks to higher fees, and media rights revenues also increased. Say, speaking of media rights, in the United States, Formula 1 racing is moving from ESPN to Apple TV. Now, the move was announced last fall. Apple's reportedly paying them about $140 million per year for the rights, whereas ESPN was probably, I think, paying them only about $85 million a year.

Oddly, the announcement of this new, more lucrative deal for Formula 1's TV rights came at around the same time the stock peaked in October of last year. Now, some of that's because a new TV deal with somebody was wildly anticipated. So, there was this kind of buy the rumor, sell the news effect. But now, the stock's much lower just as the new Apple TV money is about to start flowing in. Of course, the move to Apple does come with some risk for Formula 1. Let's talk about this. As a standard cable channel, ESPN has a wider reach than say Apple TV. So, there's a realistic chance that the overall viewership might suffer, right? In theory, that could hurt sponsorship revenue down the line. But business-wise, with Apple paying a heck of a lot more for the rights, I don't see how Formula 1 could have turned them down.

This is one of Apple TV's biggest bets yet in live sports. So, I have to believe that they put significant resources behind it. In fact, after a couple practice sessions in Australia, we're already seeing some positive reviews of the Apple TV broadcast. There are a couple more reasons to like Formula 1 too, although they're a bit in the weeds. First, in December, Liberty Media split off Liberty Live Holdings as a separate publicly traded company, something it had previously done with the Atlanta Braves organization. Now, this is a complicated restructuring move behind the scenes for the corporate parent, but the result is an incrementally more streamlined structure for the Formula 1 business. Liberty Media no longer has a tracking stock structure after that move, and the company also sent Liberty Live off with some assets that had previously been classified under the Formula 1 business.

The bottom line is that the business you are now buying when you buy F1 is now much closer to a pure play on the Formula 1 and MotoGP racing leagues. Second, Formula 1 reached a deal with all the various teams that make up the league as well as FIA, the league's governing body, through 2030. This is a bit of a formality. It's in everyone's interest, right, to keep the show going. But for shareholders, it represented the removal of an overhang here.

Last week, following the company's earnings report, analysts at Wells Fargo upgraded Formula 1 Group from underweight to equal weight while raising their price target slightly from 93 to 95. Now, the analysts had initiated coverage with an underweight sell rating about a year earlier, but said that they were upgrading now because their biggest concern, that the league negotiations would be tricky and the new TV deal would underwhelm, no longer seem to apply. Seeing Wells Fargo basically cover its short, so to speak, on Formula 1 was pretty encouraging because they've been the biggest sell-side bear on the stock, which has 13 buy ratings and four holds. In fact, even after raising its price target to $95, Wells still has the lowest price target for this thing. Everyone else, even the few analysts who withhold, well, they have price targets north of 100.

Finally, valuation-wise, I won't lie to you. Formula 1's not cheap. It's expensive, trading around 42 times this year's earnings estimates. But I'm willing to pay up for the stock because it's got an incredibly unique business. In fact, I would argue that Formula 1 deserves a premium just for its scarcity value alone. Plus, if you look back to where the stock started trading about two and a half years ago, this is actually the cheapest it's ever been on a PE or price-to-earnings basis.

So, here's the bottom line. This weekend, a new season of Formula 1 racing begins on Apple TV. But as you watch the action on the track, maybe consider opening a new position in Formula 1 shares. This is one of the few business opportunities in pro sports that you can participate in directly. Stock's been a good long-term performer, but after its recent pullback over the past five months, I think you're getting an amazing opportunity to make some real money. Let's go to Bobo in North Dakota. Bobo,

Ah, I'm trying to chill, Bobo. I'm trying to chill. It ain't easy. How can I help you?