Cramer's Morning Take: Capital One 5/19/25

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Jim Cramer (1:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

SPEAKER_5 (1:09)

Capital One also closed its acquisition of Discover Financial Services.

Jim Cramer (1:14)

Here we go. I said to everybody this weekend, what was my favorite name? I said, Capital One. I think this is the one you're going to get analysts talking about them being the next big network. There's three, remember there's three. There's MasterCard, there's Visa and American Express. Now there's four. They have 120 million card holders. Why not go to the restaurants in the world, the shops, any retailer, and say, look, rather than do American Express or MasterCard, pull us, put us in.

SPEAKER_5 (1:45)

Yes, synergies galore here, whether it's moving the Capital One cards onto the Discover Network, expense synergies, which just from like a reduction of overlapping task forces. Yep, and then they'll do, they have to do some bottom ups work after the deal's done, but a lot of excess capital on the balance sheet here, so share repurchases should be a major thing in the second half of this year.

Jim Cramer (2:12)

I told everybody this weekend, when they asked me what my favorite name is, many wanted me to say in video off this conference, and instead I said Capital One.

SPEAKER_5 (2:21)

Well, Apple has been a long time fave, but the Long Knives are out here. There was a big story in Bloomberg talking about how they've spent billions on AI and doesn't have much to show for it. That Siri upgrade has been indefinitely, won't be out in time for next month's Worldwide Developers Conference, a year after it was announced, and this was really interesting. So the story says that some employees attribute some of the company's struggles in AI, it sounds like to culture, just methodically releasing products on software. That's meaningfully updated once a year. AI moving a lot faster, kind of release stuff and things break, and then you fix it and then you improve it. AI is just moving a lot faster.

Jim Cramer (3:02)

Well, also, they may use that $20 billion check from Google to be the self, the only one in search engine.

That's a dollar per share. These epic fight could cost them $0.30 per share. And if they don't have the right stuff when it comes to AI, well, obviously, they can fall behind there, particularly, I think people will be just waiting and waiting, but they put out no product that's good before it's time. But look, you know I've been, I talk about my big worries on Wednesday, and Apple's my number one worry.

SPEAKER_5 (3:36)

Sure.

Jim Cramer (3:38)

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