Faith in FAANG: Cramer’s “ Mad Money ” Recap (Monday 11/30/20)

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FAANG stocks have driven the market higher and they will continue to drive us higher, Jim Cramer told his Mad Money viewers on Monday. While some fund managers advocate a rotation in oils and cyclical stocks, Cramer said he is staying with the winners.

Facebook’s FAANG actions (FB) – Get the report, Amazon (AMZN) – Get the report, Apple AAPL, Netflix (NFLX) – Get the report and alphabet (GOOGL) – Get the report are not economically sensitive, Cramer said, they are in charge of their own destiny.

Facebook has changed its image from one of the most hated companies to that of a champion of small businesses and its advertising platform is second to none.

Apple stocks may appear overvalued at 30 times earnings, but with the US dollar falling, Apple’s overseas earnings are going to translate into huge profits.

Amazon remains America’s most essential retailer, and with Cyber Monday, expect more estimate bumps to come.

Then there’s Netflix, the streaming media giant that always knows exactly what we want to watch, even in an environment where there aren’t many new movies being released. Cramer said investors continue to underestimate Netflix.

Finally, there’s Alphabet, whose advertising platform was a big winner during the pandemic and is poised to be an even bigger winner as vaccines start to flow and travel advertising returns.

Cramer said calls for oil inventory turnover just don’t make sense because many oil producers can’t make a profit with crude oil prices so low. A rotation into cyclical cycles would also be a bad decision, as the economy is still likely to return to normal in several months.

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

Don’t miss the best of Cramer, every day, with quick and actionable strategies: StreetLightning.

Executive decision: S&P Global, IHS Markit

In his first “Executive Decision” segment, Cramer spoke with Doug Peterson, CEO of S&P Global (SPGI) – Get the report, and Lance Uggla, Chairman and CEO of IHS Markit (INFO) – Get the report, which on Monday announced a merger in the financial reporting market worth $ 44 billion.

Peterson said their businesses will combine two high-growth areas of financial markets and the new entity will include 76% of recurring revenue. He noted that there is almost no overlap between the two companies and that they do not expect any regulatory issues.

Uggla said that by combining their information assets and content delivery networks, they can create whole new categories of information products using the latest analytics and artificial intelligence. “Nothing else beats this combination,” Uggla concluded.

Sure Real money, Cramer identifies the companies and CEOs he knows best. Get more of his information with a free trial subscription to Real Money.

Executive decision: Dell Technologies

For its second “Executive Decision” segment, Cramer also spoke with Michael Dell, President and CEO of Dell Technologies (DELL) – Get the report, which just posted a profit of 62 cents a share on a 3% increase in revenue.

Dell said it was a good quarter for their business as it progressed in services. He specifies that 11% of their income is now deferred thanks to his many services.

Asked about their income, Dell explained that everything is now happening at home, from work and education to entertainment – and this has led to increased consumer spending on technology. Many families are becoming a “one laptop per person” family and Dell is riding this wave.

That’s not to say that business and data center expenses aren’t high either. Dell noted that it is seeing growth in many areas, including analytics, AI, and 5G networks. Dell shares have risen 42% in the past 12 months.

Executive decision: Carvana

For its latest segment “Executive Decision”, Cramer checked in Ernie Garcia, President and CEO of Carvana (CVNA) – Get the report, the used car retailer with shares up 171% over the year.

Garcia explained that Carvana continues to create a great experience for its customers and is able to make more money per vehicle sold by vertically integrating its operations to reduce costs.

Garcia added that Carvana is more than just a place to buy cars online. They use modern technology to give customers the best choice and the best price. The company’s inspection and overhaul centers make sure every car will delight its new owner, and if not, Garcia said it offers a 7-day return policy.

When asked about the competition, Garcia said their model was no secret. Carvana has spent eight years perfecting their model and they come to work every day to make it even better.

Tesla is the next Tesla

In his No-Huddle Offense segment, Cramer reminded viewers if they are looking to invest in the next Tesla TSLA, they should invest in Tesla. This is because Tesla makes the most popular electric vehicles on Earth. The company manufactures them in America, China and soon in Europe. And, a year ago, Tesla was profitable.

Many have tried to make a better electric vehicle, but so far all have failed. The rest are mostly just hype, he said, as we saw during the 27% drop in Nikola. (NKLA) – Get the report Still today. Cramer said he was even getting nervous about his Plug Power recommendation. (PLUG) – Get the report, as insider selling could derail that stock’s recent rally.

Investors looking for a safer way to invest in hydrogen fuel cells may always consider Cummins (CMI) – Get the report and gas supplier Linde (LINEN) – Get the report.

Lightning round

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

I was (OLN) – Get the report: “This complex goes higher. This thing is on fire. Basic chemicals work.”

Platoon (PTON) – Get the report: “Sometimes the actions are too hard and this one is too hard. I take a pass.”

Johnson & johnson (JNJ) – Get the report: “J&J is fine. This is a cheap stock that will do the trick with the falling dollar.”

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