Business Goes Digital: Cramer’s “ Mad Money ” Recap (Thursday 12/3/20)

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Companies have to go digital or they risk going bankrupt, Jim Cramer told his Mad Money viewers Thursday night.

For investors, it’s easy to spot the technology – it’s what we use every day. Whether it’s an Apple iPhone (AAPL) – Get the report or our order online at Starbucks (SBUX) – Get the report and Chipotle (CMG) – Get the report, we see this technology firsthand because we use it.

But don’t forget the companies that make this digitalization possible. These companies operating behind the scenes are generating monstrous growth due to this growing demand.

Cramer refers to companies like CrowdStrike (CRWD) – Get the report, which just hit new all-time highs on earnings as demand for cybersecurity continues to rise. Or snowflake (SNOW) – Get the report, which rose 16.1% on profits as demand for data analytics continues to rise.

And don’t forget a company like Salesforce.com (CRM) – Get the report, which reported a terrific quarter earlier this week and announced its acquisition of Slack Technologies (JOB) – Get the report.

Of course, the flip side of these stocks is the valuation and the risk of a sharp drop, like Splunk (SPLK) – Get the report known Thursday. However, these higher risk, higher return stocks can be a game changer for investors if they pick the winners.

Here’s the gist: It’s okay to own the businesses that use technology to help pivot their business, but it’s also a good idea to own some of the businesses that make it possible in the first place.

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Executive decision: Snowflake

Speaking of Snowflake, Cramer spoke to Frank Slootman, President and CEO of Snowflake, about the executive decisions segment of the show.

Big data is becoming more and more important day by day. But the processes within that data analysis should drive results for businesses and should help understand people’s behavior, Slootman said.

The beauty of Snowflake is that it allows massive scale, is incredibly efficient and very precise, he said. The problem with anecdotal observations is that they are inaccurate and often downright bogus, he added.

Only a fraction of the big data has really been exploited and there is a lot of potential where it can go from here. With Snowflake, the company is also helping to solve this problem.

Its platform doesn’t hit customers with a huge bill from the start. Instead, customers can sign up and will only be charged for what they use. In addition, the platform is very accessible. You don’t have to be a rocket scientist to use it, Slootman said.

The stock hit new all-time highs on earnings, but the initial reaction wasn’t so bullish until investors could digest how good a quarter was. If investors want to own high octane growth, they can have a position in Snowflake, Cramer said.

Executive decision: Azek

On the second “Executive Decision” segment of the show, Cramer spoke with Jesse Singh, Chairman and CEO of Azek (AZEK) .

Despite a fantastic quarter, the stock fell 2.6% on Thursday. Cramer pointed out that the company’s profits beat top and bottom profits, Azek’s revenue growth of 22%, and management’s good forecast for the year ahead.

It was a “really strong quarterback,” Singh said. Revenues have increased and margins have improved, even in a year marked by a pandemic.

The thing that people don’t seem to understand? The housing trend. The remodeling market is very strong right now, Singh explained, adding that these trends are expected to remain in place for the foreseeable future.

“We have the advantage of playing in multiple technologies, which gives us multiple opportunities to drive growth,” he said.

These technologies allow the company to perform well on the patio and outdoor building markets. These premium products look a lot like wood, but are not wood materials. In fact, Azek’s biggest raw input is recycled material, which made up 54% of its materials in FY2020.

There are also a lot of long-term opportunities, with much of the market still being tackled with wood. Singh said they need to educate customers and help spread awareness of non-wood materials.

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SPAC and VE

Amid the volatility of PSPCs, special purpose acquisition companies, and EV stocks, Cramer wanted to take a closer look at CIIG Merger Corp. (CIIC) .

The company will merge with Arrival and will eventually trade under the symbol “ARVL”. The merger will take place in the first quarter of 2021, where the company will receive $ 660 million in cash.

The stock rose from its high of around $ 27 to $ 21.55, the closing price on Thursday after the stock’s impressive 9.6% gain that day. That drop is enough for speculative buyers to start leaning into them, Cramer said.

So what makes this company so much better than the rest of its peers? Although arrival does not have any income or income yet, they may not be that far away.

The company, which plans to build electric buses and vans, plans to begin production in the fourth quarter of 2021. Its investors include Kia, Hyundai and United Parcel Service UPS – the latest in this group already has an order for 10,000 electric vans. and an option for more. The company has already secured $ 1.2 billion in orders for its first products.

Cramer is also excited about the company’s “micro-factory” production approach. Essentially, it can set up in about six months, virtually anywhere in the world where warehouses exist, and get up and running in a less capital intensive operation.

The company has aggressive, but not impossible, goals such as $ 14 billion in revenue by 2024. If Arrival can even come close, its stock should perform well, Cramer said.

Coming deportation crisis

On the No-Huddle Offense series, Cramer pointed out that we have had record hospitalizations and deaths from Covid-19. The locks are also tightening. So why aren’t there more bankruptcies?

While business bankruptcies are on the rise – no surprise there – personal bankruptcies are on the decline. How is it possible? With a moratorium on evictions, it is easy for many consumers to pay their other bills and have pocket money. After all, some don’t have to worry about the rent.

However, when this moratorium ends at the end of the year, we are going to have a rude awakening. This includes homeowners behind on their payments, homeowners, banks, retailers, and REITs.

Cramer has been a proponent of adopting additional stimulants, but it’s just not gaining popularity in Washington. It’s crazy that the government is allowing such a risk to grow when we are so close to introducing a vaccine.

The bottom line? Americans still need help.

Lightning round

Here’s what Cramer had to say about some actions during the Mad Money Lightning Round:

Blackberry (BB) – Get the report: “He has been reinventing himself for so long, I forgot what he is reinventing. How much better would investors have been with Apple? I suggest buying this one instead. ”

Flashing load (BLNK) – Get the report: “Be very careful with this group. I like the one we discussed earlier on the show, CIIG Merger.

Palantir (PLTR) – Get the report: “It was a good play recently, because it has been shown so much since it went public.”

Pay Pal (PYPL) – Get the report: “The management is excellent, it is the bank of the future. I think it can go even higher.

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