Lightning Round: Investors entitled to pick one speculative stock, says Jim Cramer

Key Concepts:

• Dutch Bros (BROS): Coffee chain stock.
• American Bitcoin (ABTC): Speculative stock.
• Recursion Pharmaceuticals (RXRX): AI-powered drug discovery stock.
• Waste Management (WM) & Republic Services (RSG): Waste management companies.
• Speculative Stocks: High-risk investments.
• AI-powered drug design: Using artificial intelligence to develop new drugs.
• Proof of Concept: Evidence that a product or idea is feasible.
• Bounce: A price increase after a decline.
• Lightning Round: A rapid-fire question and answer segment.

Dutch Bros (BROS)

• Connor from Florida inquired about Dutch Bros (BROS).
• Cramer notes the stock has declined from $86 to $53.
• He attributes the decline to the removal of speculative froth.
• Cramer suggests buying some shares at the current price and more in the $40s.
• He doesn't expect the stock to fall back to the $30s.

American Bitcoin (ABTC)

• Peter from New York asked about American Bitcoin (ABTC).
• Cramer identifies it as a "total spec" stock.
• He acknowledges it's inexpensive in dollar amount but potentially expensive in actual value due to lack of earnings.
• He advises that it should be the one speculative stock in a portfolio.
• He warns that it could lose everything.

Recursion Pharmaceuticals (RXRX)

• Trey from Minnesota inquired about Recursion Pharmaceuticals (RXRX), an AI drug discovery stock backed by Nvidia.
• Larry Ellison believes AI-powered drug design is a multi-trillion dollar industry.
• Cramer acknowledges Nvidia's involvement but notes the stock has been a "dog."
• He states the stock was once twice the price and has performed poorly.
• Cramer needs to see a "proof of concept" before recommending it.

Waste Management (WM) & Republic Services (RSG)

• Ike from Georgia asked about Waste Management (WM) and Republic Services (RSG).
• He notes their strong cash flow and dividend growth but expresses concern about rising long-term interest rates and pressure on infrastructure spending.
• Cramer agrees that both companies are good but their stocks have been declining.
• He wants to see a "bounce" in their stock prices.

Lightning Round Conclusion

• The Lightning Round is sponsored by Charles Schwab.
• The segment concludes with a teaser about speculative high fliers being grounded and whether it's a warning or a wake-up call.

Notable Quotes

• Cramer on ABTC: "This is a total spec... It's your one spec, as I say, in how to make money. Any market you're entitled to one spec. That's it. But that could lose everything."
• Cramer on RXRX: "Don't know, it's been such a dog... I need to see a proof of concept here."

Key Takeaways

The Lightning Round covered a range of stocks, from established companies to speculative plays. Cramer emphasized the importance of understanding the risk associated with speculative stocks and the need for proof of concept before investing in companies like Recursion Pharmaceuticals. He also expressed concern about the recent performance of solid companies like Waste Management and Republic Services, awaiting a potential bounce. The segment highlighted the need for careful stock selection and risk management in the current market environment.