CNBC Television
Mad Money 11/05/25 | Audio Only
11/6/2025, 1:30:03 AM
Economic Summary
- Markets experienced a rebound after political news, demonstrating short-term volatility driven by headlines rather than fundamentals; such bounces reward disciplined growth investors.
- Growth is concentrated in major AI and semiconductor names (e.g., NVDA, AAPL, AMZN) but their forward P/Es were argued to be in line with or below market expectations, tempering the 'momentum only' critique.
- Corporate reinvention can unlock large value: Larry Culp's breakup and refocus at General Electric (now GE Aerospace) is highlighted as a model of value creation outside pure tech.
- Operational responses to consumer pressure matter: McDonald's (MCD) cutting prices is presented as an effective tactic to regain volume and improve near-term results.
- AI-related spending (including OpenAI) is intense and possibly excessive in parts, while quantum computing commercialization remains limited to a few players (IBM, Google) and many names are multi-year plays.
- Pfizer (PFE) is cited as an example of a large, innovative company that nevertheless lacks a visible growth engine, keeping its valuation (around eight times earnings) unimpressive to investors.
Bullish
- Big-cap AI and semiconductor leaders offer sustained growth and reasonable multiples.
- Corporate turnarounds (e.g., GE/GE Aerospace) can create outsized shareholder value.
- McDonald's price cuts are driving traffic and near-term revenue recovery.
- Boeing shows improving cash flow — buy under $200.
- Axon maintains strong adjusted EBITDA and strategic acquisitions in 911 tech.
Bearish
- Palantir-driven fear can cascade and punish good stocks indiscriminately.
- Pfizer lacks a growth engine and trades as an uninvestable low-PE stock.
- Chipotle appears overvalued and is showing execution problems.
- Many quantum and AI-adjacent names remain speculative and years from payoff.
Bullish tickers
NVDAAAPLAMZNSHOPMCDGEBAAXONBEIBM
Bearish tickers
PLTRPFECMGRGTI
NVDA
Bullish
Seen as a core growth engine in AI and data centers; multiples argued as reasonable.
Bearish
Concerns about OpenAI overspending and execution risks in AI infrastructure.
AAPL
Bullish
Expected to have a great quarter and sit near market multiples.
Bearish
No specific bearish case detailed in this transcript.
AMZN
Bullish
Its multiple falls when adjusted; still seen as a diversified growth company.
Bearish
No explicit bearish argument presented here.
SHOP
1 price targets
100
Bullish
Described as oversold after unjustified panic; management expects a strong holiday season.
Bearish
Stock sold off with headline-driven market moves despite solid fundamentals.
MCD
Bullish
Price cuts (value menu) are driving traffic and should improve upcoming quarter results.
Bearish
Short-term revenue/earnings misses can create headline pain.
GE
Bullish
Larry Culp's breakup and turnaround of GE/GE Aerospace presented as a major value-creation example.
Bearish
No direct bearish case here; past struggles referenced before turnaround.
BA
1 price targets
200
Bullish
Recent quarter showed positive cash flow; recommended buy under $200.
Bearish
Charges and program delays (e.g., 777 pushback) have pressured sentiment.
AXON
Bullish
Underlying adjusted EBITDA and growth are strong; acquisitions (Prepared 911) improve product stack.
Bearish
A messy-looking GAAP EPS influenced by stock comp and tax accounting caused a selloff.
BE
Bullish
Management execution appears to have clicked; the business is finally scaling and rewarding holders.
Bearish
Long prior skepticism due to long commercialization timelines.
IBM
Bullish
Cited as one of the realistic quantum computing players with deployable machines near-term.
Bearish
No specific bearish claim made here.
PLTR
Bearish
A single stock's failed rally (Palantir) sparked market fear and indiscriminate selling.
PFE
Bullish
Large pharma with innovation history, though recent deals insufficient to change outlook per the show.
Bearish
Trades at about eight times earnings without a clear growth engine; called 'uninvestable' by host.
CMG
Bearish
Described as too expensive and not executing well; vulnerable to further multiple compression.
RGTI
Bearish
Rigetti characterized as speculative/spaghetti; quantum hopefuls may be years away.
People mentioned
Jim CramerLarry CulpHarley FinkelsteinJensen HuangDavid FaberCarl QuintanillaDavid JoynerEd BreenBill KapoorGreg HayesMary DillonElliott HillPhil BraceRick SmithAlbert BourlaKayleeIramBriannaJordanZacharySantiagoAshSteve