CNBC’s Jim Cramer on Friday said SpaceX’s blockbuster debut could pave the way for a new wave of AI-related equity offerings and help create a more constructive backdrop for stocks.
“Never has one initial public offering captivated the minds of Wall Street and perhaps Main Street as much as Elon Musk’s SpaceX,” the “Mad Money” host said.
Elon Musk’s rocket company debuted Friday and finished the session at $161 per share, giving SpaceX a market value of roughly $2.1 trillion. Cramer said the success of the offering could encourage other companies to tap the market soon, particularly AI players such as Anthropic. The startup behind the Claude models confidentially filed for an IPO earlier this month. Additionally, he said companies including Microsoft, Meta and Amazon may decide it’s a good time to sell stock to help fund their AI buildouts — similar to what Google parent Alphabet is doing.
“Bankers work fast these days,” Cramer said, explaining the idea would be to “strike while the iron is hot.”
“I don’t know if they can resist selling stock after seeing how SpaceX played out,” he added.
Cramer also said investors should keep a close eye on developments in the Middle East. While he remains skeptical that peace is fully at hand, a lasting resolution could send oil prices lower and help ease inflation pressures.
“If we get peace, the first thing you have to realize is the process toward lowering inflation will begin with a collapse in the price of oil,” he said.
Cramer said he initially worried the SpaceX offering could overwhelm the market, but now believes its successful debut could help support sentiment and set the stage for a constructive week ahead.
“The success of today’s placement of SpaceX is something to be studied for years,” he said. “It’s a win for the market, and if we get peace, it won’t be stopped.”
With that backdrop, Cramer turned to the shortened trading week ahead.
Monday
Corporate news is relatively light, but Cramer said he’ll be tuning into Dave & Buster’s earnings call, which could offer valuable insight into consumer spending trends.
Tuesday
Tuesday’s housing starts report will provide a key read on the housing market. Cramer said a soft housing starts report could strengthen the case for new Federal Reserve chief Kevin Warsh to cut rates.
“I know lots of people have been saying that the economy is too strong and we need to raise rates,” he said. “I think these people are dreaming.”
Wednesday
Cramer plans to watch an analyst meeting hosted by oil services giant SLB for clues about whether producers are increasing drilling activity following the recent surge in crude prices.
On Wednesday, investors will also get the latest retail sales data, offering another look at the health of the consumer and whether spending is beginning to soften. Cramer thinks “we’ll also see some weaker retail sales this morning, again, favoring a rate cut.”
The biggest event of the day, though, belongs to the Fed meeting and Warsh’s afternoon press conference.
“I predict Warsh will begin the process of setting us up for rate cuts, because the underlying problems in the economy are persistent, but inflation will go away once we make a deal with the Iranians.”
Thursday
Before the bell, Kroger and Accenture report. Kroger continues to grapple with rising costs that are difficult to fully pass on to consumers, while Accenture faces growing concerns that AI tools from OpenAI and Anthropic are taking business from traditional consulting firms.
Thursday will also mark the final trading session before a major Nasdaq-100 rebalance takes effect. New additions include Rocket Lab, Astera Labs, Teradyne, Nebius, and CoreWeave, while Verisk, Cognizant, Insmed, Zscaler, and Charter Communications will be removed from the index. Cramer noted that “these index admissions move things” as fund managers reposition portfolios ahead of the changes effective at Monday’s open.
