Mad Money w/ Jim Cramer 7/1/26

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**Robert** (0:46)
My mission is simple, to make you money.

**Jim Cramer** (0:49)
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.
Hey, I'm Cramer, welcome to Mad Money. Welcome to Cramer America. Other people want to make friends, not me. I just want to make you some money. My job is not just to entertain, but to educate, do some teaching. So call me 1-800-743-CBC Tweet Mitch. I'm Cramer. At the beginning of a new quarter, hope always brings eternal.
We almost always get a tremendous rotation out of the winners and do the underperformers, as people bet that the market has excessively punished the liars and over awarded the prize possessions.
And you can't really see it from the afters. Dow did 14 points today. S&P edged down 0.22%. Has that declining 0.66% right at the end of the day, kind of nasty. But it is major. See, we need to ask ourselves if this rotation is staying power. What if it's going to burn out after a day or two? Historically, the latter is the more likely outcome. Why don't we do this? Let's start with one of the Mag 7 stocks. Let's start with Meta platforms. Last night, I told you that Meta could make a fortune. Simply by announcing it would rent out its extra computing power via a cloud infrastructure business like Amazon Web Services or Microsoft's Azure. Today, Bloomberg said Meta is doing precisely that and the company confirmed it to me. Now, previously, I said this move could be worth $100 per share. Today alone, Meta has already rallied nearly $50. And you know what? I think it's got more room to run because their cloud business will be instantly profitable.
I don't know if Meta needs to do an equity offering to pay for more of its data center build-up. I don't. That's it. It has countless potential clients and it can snare big business, something it needs. Because see, right now, Meta is too much of a consumer-oriented advertising company. The enterprise-oriented cloud infrastructure game represents a much better, less episodic business model. Now, that will cause Meta's incredible low price journeys multiple to expand and the stock will rise proportionally or in the street terms, raising numbers, Meta.
Next up, after creating all year, the software is a service stocks like Salesforce, like ServiceNow. Oh, they were flying today. Now, these companies have been hurt by artificial intelligence platforms like Anthropix, Claude. I believe AI is cutting a lot of jobs at potential and actual users of their products. And their nation AI businesses, they're not making up for the lost seats. That's the method of payment for these companies by the seat. And that's why I'm betting that these gains, they may be ephemeral.
Service now and Salesforce are down so much for the year, though, of 31 and 38%, respectively.
These are due for at least a couple of day bouts. But it's just a bounce, people, until we see earnings that can tell a different story of this entire enterprise software group. The only one right now that I actually trust is Palantir. This is the fastest growth of the stocks I follow, and it's been crushed. It's down 80 points from its high. Today, it finally showed some signs of like, hey, I don't know if you caught Alex Karp this morning, my buddy pal friend. Whoa, smoke show. How about the gains in the brokerage and private equity stock groups that have been shelled over worries about their private credit underwritings?
This morning, Goldman Sachs reported that only 3.24% of its investors chose to exercise the right to get out of their funds this month. Goldman's allowed for 5% cashiering. I think this wins a sign that the private equity stocks are at last out of the woods. In short, the move is real because the narrative of private credit chaos and destruction has proven to be phony.