Mad Money w/ Jim Cramer 6/11/26

**SPEAKER_1** (0:00)
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**SPEAKER_2** (0:30)
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**SPEAKER_3** (0:56)
My mission is simple.

**Jim Cramer** (0:58)
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.

**SPEAKER_3** (1:07)
Mad Money starts now.

**Jim Cramer** (1:13)
Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramerica. Other people want to make friends. I'm just trying to make you some money. My job is not just to entertain, but to educate, to teach you. Call me 1-800-743-CBC.
Tweet me, Jim Cramer. Tomorrow at this time, if things really go awry, we may have a new champion, a new largest stock in the world, and its name is SpaceX.
I know it's supposed to be valued at $1.75 trillion because that's what Elon Musk seems to want it to be worth. But that's just the IPO price. The opening price, the closing price, everything in between are out of his hands. Instead, they're in the hands of the syndicate desk and the public, and believe me, these are lions Musk can't tame.
Now, we had a buoyant session today. Dow gaining a beautiful 930 points, S&P climbing 1.75%, Nasdaq jumping 2.54%.
It stands only because the president first ramped up and then dialed back the hype for an attempted attack on Iran's most important port. But there was something else at work today too, behind the scenes. Today was the day you found out your allocation for SpaceX and you can see the market starting to levitate early on as we again hear that the deal was tight as a drum. When you think about IPOs, consider them in the context of Goldilocks and the three bears. You don't want the deal too cold because then it blows up in your face. You don't want it too hot where you have meaningless gunners in there.
We'll send the stock to Stratisford and flip it at the opening. You want it to be just right. Now, what's just right? Where the stock is a little bit above where the deal priced. If it's 135, you want the stock to go to about 140, maybe 142 Meander's higher. Perfect. No runaway freight train.
But aside from too hot, too cold and just right, you know what? There is a little known fourth bear. Not in the story.
So hot, this bear, it burns your face off.
This is a scenario where SpaceX goes to totally insane levels, possibly to the point where its market capitalization rivals, if not passes, NVIDIA, is the company that's the largest in the world. Two point, I would be at 4.9 trillion dollar valuation. How could it get that high? Let me give you the sequence. First, we're told that large institutions got a lot of stock, but informally pledged to buy more in the open market. That's when they put in for 1 million shares at the deal price. Then they get allocated 500,000 shares, and with a wink and a nod under the assumption that they'll buy another 500,000 in the open market. I think many of my members should get that call. Informally, they were most likely told not to sell unless the stock goes so high that the syndicate desk will release you from that no sale pledge. Then there are the people known as retail, the home gamers like you who love Elon Musk and can't believe they're going to get in on the ground floor. A little more than 20% of the stock was allocated to retail. These buyers who got anointed from, they got some stock from E-Trade, Robinhood. They can be controlled because they're paying a disciplined sales desk operator who gave them the stock. That operator can check your account to see if you sold the stock that you pledge you wouldn't. If you sell, you're not going to get any more anthropic or open AI. Then there's the wild cards. The people who never bought a stock before or are using a discount operator who's not part of the syndicate, these are new unguided missiles. They cannot be controlled. They're big in number and they're very unsophisticated, so they'll most likely use market orders because they don't know there's an alternative. They may only be after, say, 50 shares, but that adds up. When there are a lot of buyers, holy cow, a lot of 50s can be very big. Now the people controlling the books, running the deal, both Goldman Sachs for big accounts and Morgan Stanley for retail, will want to ensure that this IPO doesn't cause a giant blowout. A double would be a resounding defeat for them, not to mention a real loss for Musk, because of course he would have left a lot of money on the table. It does get worse. Just a few days later, the stock gets admitted to a bunch of indices, including the Nasdaq 100 That means a ton of forced buying from index funds, potentially sending SpaceX still higher. Now what should happen? The syndicate desks who really run this show should tell brokers that they don't need to stoke demand if there turns out to be a lot of money coming in for the transom. Their clients don't even have to keep the stock or buy more if they don't want to. They're allowed to take profits. That's one thing to say. This kind of talk isn't usual. And I fear the syndicate desks don't even know how to do it. The larger accounts who pledge to buy another 500,000 shares in the open market, they should be released or discouraged from doing so. They can sell their stock. Because the luminous amount of stock coming over the transom to buy, the syndicate desks may have a hard time to find sellers. If they don't, an unprofitable company could end up being the biggest stock on earth. That's a mistake. It can't be changed because neither Goldman or Morgan Stanley can change it. What happens then if it goes too high? It's something we saw with Figma and Cerebris. For a couple of days, they continue to go higher and then they started the long descent down that could have been prevented if their syndicate desk had lost control of their stocks. We want the deals to be under control because otherwise they can be disastrous like those two I just mentioned. I know from personal experience during the.com boom, I brought a company public and it went from $19 opening price to $62 where it actually opened and $2 in a heartbeat, 1916 too.