Next Week’s Game Plan: Cramer’s ‘Mad Money’ Recap (Friday 12/04/20)

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Jim Cramer took a look at next week’s game plan on CNBC’s “Mad Money” TV show Friday.

On Monday, investors are hoping to have some sort of traction in Washington over a stimulus bill. At this point, even a smaller deal would be good for the economy, but without a deal investors could be concerned, Cramer warned.

We will also have revenue from Coupa Software (STROKE) – Get the report and Toll Brothers (TOLL) – Get the report, because housing has been a major bright spot.

Tuesday, Salesforce (CRM) – Get the report will host its investor day. It couldn’t have come at a better time after the company’s recently announced plan to acquire Slack. (JOB) – Get the report, Cramer reasoned.

Wednesday is more Investor Day meetings, this time from Lowe’s (LOW) – Get the report and Starbucks (SBUX) – Get the report. Cramer expects to hear positive developments from both companies, as Lowe’s works through its turnaround and Starbucks’ China business continues to hum.

Adobe systems (ADBE) – Get the report and Campbell’s Soup (CPB) – Get the report will also report the results on Wednesday.

Thursday brings another Investor Day reunion, this time with Disney (Dis) – Get the report. Cramer will also wait to see Broadcom’s quarterly results (AVGO) – Get the report and Costco Wholesale (COST) – Get the report, two Action Alerts PLUS titles.

Finally, on Friday we’ll have data on consumer confidence, which should shed light on how consumers feel as the coronavirus rages on, Cramer argued.

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.

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Executive decision: CrowdStrike

On the “Executive Decision” segment of the show, Cramer spoke with George Kurtz, co-founder, president and CEO of CrowdStrike (CRWD) – Get the report.

The company recently reported a “set of explosive numbers,” Cramer said, with a beating high and low to accompany “excellent indications.” Are there still advantages?

Kurtz explained that Covid-19 is not just a one-time event. It only accelerated the trends that were already in place. As a result, the move to the cloud and the need for cybersecurity will continue in the long term.

It’s a lasting trend, he reasoned.

More recently, hackers have attacked drug companies thousands of times a day now that a vaccine of such value is in development. But that doesn’t stop with vaccine manufacturers. Companies of all kinds are increasingly forced to migrate to the cloud to better manage their workloads.

As long as this continues – and it will – it will be necessary to secure it, Kurtz said.

SPAC focus

Cramer wanted to take a closer look at another PSPC offering, this time with Hennessy Capital Acquisition (HCAC) – Get the report. The company will merge with Canoo, with the ticker symbol eventually becoming “CNOO”.

The company, which plans to offer “subscriptions” to the electric vehicles it manufactures, receives much less media coverage than its other PSPC peers. That, combined with the fact that Canoo has serious potential, makes it a decent buy for speculative investors who are willing to add a drop closer to $ 10 and who can accept volatility, he explained.

Canoo is run by a strong management team who plan to take a “skateboard approach” – which involves building the vehicle frame, which can then be used for multiple types of vehicles. This can include sedans, vans, and trucks.

Even though Canoo doesn’t plan to start production until 2022, in the meantime it is generating revenue from engineering services. The fact that he will have sales before production already makes him better than many of his peers.

If Canoo can even come close to some of his multi-year income estimates, the stock should fly higher, Cramer reasoned.

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Executive decision: Zscaler

On the second “Executive Decision” segment of the show, Cramer spoke with Jay Chaudhry, President and CEO of Zscaler (ZS) – Get the report.

Like CrowdStrike, this company also “kicked her out of the park,” Cramer said, pointing to her profits and revenue, and her “wonderful” advice.

Much like CrowdStrike, Chaudhry said that Covid-19 has only accelerated digital transformation trends that are already in place. Businesses will continue to migrate to the cloud – they must do so – and as a result, cybersecurity will remain in demand.

Zscaler processes over 140 billion transactions per day. For context, Chaudhry noted that Google processes around 8-9 billion search requests per day.

To put it more simply, he referred to an international airport. Not only does Zscaler have to check every notional passport that arrives at the kiosk, but he also has to check every piece of luggage that comes in to make sure there is nothing wrong.

In addition, Zscaler must ensure that nothing good, such as confidential information, escapes. With so many customers and an almost endless amount of data, investors can see why this business is so busy.

With a final note on the airport, Chaudhry said not only does Zscaler have to be incredibly secure, but it has to be fast. No one wants a slow experience. This combination of safety and speed is the reason why so many of his competitors cannot keep up, he concluded.

No click violation

On the show’s “No Huddle Offense” segment, Cramer wanted to give credit where credit was due: to young investors.

These young investors are sometimes referred to as “Robin Hoodies,” said Cramer, named after the brokerage house. Many of these investors have squashed it under names like Tesla (TSLA) – Get the report, Snowflake (SNOW) – Get the report and DocuSign (DOCU) – Get the report.

They have also done well thanks to the optimism of airlines, cruise lines and other businesses that depend on the economy reopening.

Despite the pessimism on Wall Street about the coronavirus, stock dilution, valuation, debt and other concerns, these young investors have seen their optimism pay off, he concluded.

To watch reruns of Cramer’s video segments, visit Mad Money page on CNBC.

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