Cramer’s Crazy Money Recap: Marvel, Nvidia, Salesforce

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You can listen to the Fed-obsessed pundits, Jim Cramer told his Mad Money viewers on Wednesday, but it’s a lot easier to follow the bull market and stick with what works. There are only two things to consider when choosing a winning stock, he said, the industry and the company.

Example: semiconductors. We all know there is a huge shortage of semiconductors, and companies like NXP Semiconductor (NXPI) – Get a report, Qualcomm (QCOM) – Get a report, Marvell Technologies (MRVL) – Get a report, Nvidia (NVDA) – Get a report and advanced micro-devices (AMD) – Get a report are all great companies. This makes one of them a great investment.

When it comes to real money, Cramer says investors “want sectors that are in a bull market mode, even if they are microclimate markets. You want to stay away from battlefields and markets. underperforming “. Learn more about his investment strategies and the stocks he says “run with the bulls”.

There is also a bull market in housing, and the best companies in the space are Lennar (LEN) – Get a report and Toll Brothers (TOLL) – Get a report. Cramer said these two companies are not only well run, they have tons of land to build on so they can continue to capitalize on the decade-long housing shortage in our country.

Other bull markets include financials, with Goldman Sachs (SG) – Get a report, JPMorgan Chase (JPM) – Get a report and Morgan Stanley (MRS) – Get a report among Cramer’s top picks. He was also bullish on retail, with Best Buy (BBY) – Get a report and bed bath and beyond (BBBY) – Get a report being among the stars of this sector.

Finally, investors can look into the agricultural bull market and the environmentally friendly energy bull market. Cramer was optimistic about Agco (AGCO) – Get a report and Deere & Co. (OF) – Get a report, with Devon Energy (DVN) – Get a report, Pioneer of natural resources (PXD) – Get a report and last night’s guest, Denbury (THE) .

Get more trading strategies and investment analysis from Cramer and other contributors on Real Money.

Executive decision: Salesforce.com

In his first segment “Executive Decision”, Cramer spoke with Marc Benioff, President and CEO of Salesforce.com (CRM) – Get a report, which has just completed its acquisition of the business communications platform Slack.

Benioff said Salesforce had another great quarter which included a 23% increase in revenue and saw the addition of new customers like Ikea and insurance giant GEICO. Salesforce also increased gross margins and saw strong improvements in cash flow, according to Benioff.

When asked how companies like Ikea are using Salesforce, Benioff explained that like so many other businesses, Ikea is undergoing a digital transformation and that it needs tools like sales clouds, service, commerce and marketing, which will soon be integrated with Slack for easier communications.

Turning to COVID, Benioff said we are entering the new normal and business seems to be very different in this world. Employees choose to stay home and not go back to the office. But the good news is that over the past 18 months, they have proven to be more productive when working remotely.

Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they’re saying to their investment club members and join the conversation with a free trial subscription to Action Alerts Plus.

Executive Decision: Toll Brothers

For his second segment “Executive Decision”, Cramer also spoke with Doug Yearley, President and CEO of Toll Brothers (TOLL) – Get a report, the homebuilder which just posted a profit of 33 cents a share that helped push stocks up 11% over the past week.

Yearley began by saying that low interest rates continue to drive sales as more tenants find they can afford to own a home. Plus, with more people working from home, they can live where they want to live and move to the home they always wanted. This is why new homes continue to be in high demand.

Yearley added that while the housing market is not as “crazy” as last year, demand is still very strong.

When asked about affordability, Yearley noted that house prices in Toll have increased 20% over the past year, but the company continues to be cautious about affordability. Almost 40% of their homes fall into the “affordable luxury” category, he said, which targets millennials and first-time buyers.

Yearley noted that Toll’s future depends on his land reserve, and they continue to be astute land buyers who become more and more capital efficient with each passing year.

Finally, when asked about pressures on commodities, Yearley explained that lumber prices have fallen $ 40,000 per home from their peak, but other commodities continue to put pressure on. their margins. Supply constraints and labor shortages also added two weeks to building a Toll Brothers home.

Executive decision: Snowflake

For its latest “Executive Decision” segment, Cramer checked out Frank Slootman, president and CEO of data and analytics software provider Snowflake. (SNOW) – Get a report, another company that helps companies advance their digital transformation.

Slootman explained that Snowflake doesn’t create demand for their products, they allow it. Legacy data systems just couldn’t do what customers wanted and with Snowflake, much more is possible and technology no longer holds back businesses.

Snowflake is also at the forefront of the online privacy debate, creating new products that allow businesses to share data while protecting data privacy and complying with all privacy regulations.

Slootman has backed Snowflake’s plans to reach 1,400 customers paying more than $ 1 million annually and aggregate revenue of $ 10 billion by 2028. He said the company was implementing strong teams to turn those goals into reality.

Snowflake’s efforts are aided by COVID, which more than ever requires businesses to use data to determine what’s really going on with their business rather than just guessing.

The Fed does not foresee the future

In his No-Huddle Offense segment, Cramer urged viewers to stop trying to predict the future using the Federal Reserve and interest rates. He said these economic measures worked before the pandemic, but in the new world we have little visibility into the future and the pandemic has proven to be incredibly unpredictable.

We have already seen four phases of this pandemic and each has brought new challenges. First there was the lockdown with stimulus checks. Then there were the vaccines and the hopes of a strong reopening. This was quickly followed by declining demand for vaccines and political rhetoric. And finally, the phase we are in now, revolutionary cases and an increase in the Delta variant that we could have prevented.

What’s important in a situation like this is to focus on big business and great management. What you really want to invest in are businesses that can get through these changing phases and thrive no matter what the world throws at them. Finding these companies, Cramer concluded, has nothing to do with the Federal Reserve or bond yields.

Lightning tower

Here’s what Jim Cramer had to say about some of the actions the callers offered during the Mad Money Lightning Round on Wednesday night:

Applied materials (AMAT) – Get a report: “I love the neighborhood. This neighborhood is excellent and this one is buyable.”

Global Coinbase (PIECE OF MONEY) : “I think it’s cheap, but I’m not a fan of management. I do believe in crypto though.”

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