Mad Money w/ Jim Cramer 6/30/26

**SPEAKER_1** (0:00)
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**SPEAKER_2** (0:25)
This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information-packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com/marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.

**Jim Cramer** (0:55)
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.

**Greg** (1:10)
Hey, I'm Cramer.

**Jim Cramer** (1:11)
Welcome to Mad Money.

**Jim Cramer** (1:14)
Welcome to Cramer, my friends. I'm just trying to make you some money. My job, not just to entertain, but to educate. Contact, call me, 1-800-743-CBC. Tweet me at Jim Cramer. The world turned upside down this quarter. We had huge gains in tech, but not the stocks you know and love. We had a resurgence in healthcare, but not big pharma. We caught a huge move in the industrials, and in real estate, two groups we aren't used to seeing as winners.
And then there's the magnificent seven.
Sell, sell, sell.
Which collectively shed over $2 trillion in market cap just in the month of June. A collapse that calls owning the stocks of many of this market's long-term gainers into question. Basically, we witnessed a changing of the guard people from the Mag-7 to the companies that supply, that supply to the Mag-7 as the former group spends fortunes on data centers and the latter coins money from the demand that the data centers bring. So, in a decent day where the Dow advanced 136 points, that's to be gained.79 percent and NASDAQ jumped 1.52 percent, we need to go over what tech happened to these losing stocks in the month of June, then we'll review all the winners for the quarter. Some of these Mag-7 declines, they are just hideous. The stock of Microsoft, for example, shed over 17 percent of its value this month, losing over half a trillion dollars in market cap. Even though it has a decent cloud business, that's not enough to make up for its core software exposure. Wall Street is no use for the software right now. Put aside this narrative. Software is a real business. If Microsoft wants to reverse its fortunes, it needs to do something, boom, like acquiring AI. If that company can't come public because of its severe losses, Microsoft has a stake in the company. It can make the trade happen. That would allow it to scrap Co-Pilot and replace it with uber popular shot chibi tape. Or it can break itself up into extremely lucrative parts, yes. Azure, the cloud computing business, Microsoft business to business software, Microsoft consumer software, Microsoft cyber security, video games, LinkedIn, all best in field.
Listen, after 17% loss in a month, these guys will be crazy to keep doing what they've been doing. But it ain't crazy. Second-worst performer, Amazon. Off 12% for June, my trust tells me Microsoft owns this Amazon. This is a tough one because the company is doing so much right. But they're not getting credit for their advertising business or their prime offerings. Wall Street only seems to care right now about Amazon Web Services, which is actually doing much better than expected. But it isn't pleasing buyers. Nobody seems to have any interest in what could be a potentially $50 billion semiconductor business that's under the same roof. Investors are worried here. Yes, they are. They are worried. Why? Because they want free cash flow. Amazon used to have it. They need to start making money with AI next year, no matter what or else. Otherwise, you can't justify the extreme capital expenditures. We need to see a bountiful return where the declines will continue and the stock could be punished.
Third, Meta, down 11% this month. Meta is going out of style because its now viewed as nothing more than a pure advertising play with a lot of gross international product exposure. Again, view. But right now, that does not matter. People do not want to own this stock. It is spending too much money and we don't know why. It hasn't been explained well. What can Meta do? It hasn't. It is building a ton of data center power. I think Meta simply needs to say, it's going to the cloud computing meta web service business. This can give you an instant 100 point gain.