Thursday will be the big earnings day of the week, when we hear from several Cramer favorites, including Accenture. (ACN) – Get the report, Jabil Circuit (JBL) – Get the report, CarMax (KMX) – Get the report et Darden Restaurants (DRI) – Get the report. Cramer was also bullish on Costco (COST) – Get the report, telling viewers to wait until after the company reports to buy on weakness.
Finally, on Friday we’ll have a read on the economy with the latest durable goods orders. Cramer said he expects the number to be good and confirms what FedEx (FDX) – Get the report told us earlier in the week that trade is picking up.
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.
Know your IPOs
After a huge week of IPO, Cramer used its “Know Your IPO” segment to weigh in on Unity Software, the video game platform that powers nearly half of the games in the Apple AAPL App Store . Unity shares priced at $ 52, opened at $ 75, and closed its first day of trading just above $ 68.
As with all of this week’s IPOs, Cramer said Unity, the company, has a lot to like. The game maker has a total addressable market of $ 29 billion, thanks to its offerings in games, architecture, media and automobiles. It has incredible revenue growth of 42% and mind-blowing gross margins.
But, as always, it all depends on the price. At $ 68 per share, Unity is valued at $ 18 billion, or nearly 24 times sales. “People, you can’t pay for this,” Cramer exclaimed. Unity fails its “rule of 40” test, which says a company’s growth rate plus gross margins cannot exceed 40.
You have to wait for the stocks to calm down, Cramer concludes.
Executive decision: Splunk
In his first “Executive Decision” segment, Cramer spoke with Doug Merritt, President and CEO of Splunk (SPLK) – Get the report, the big data firm with shares down 11.5% in the past month as fund managers make room for new offerings like Snowflake (SNOW) – Get the report.
Merritt explained that with more and more devices connected to the internet, businesses need people like Splunk to help them capture all of this new data and understand it all. Soon, he said, every business will become a data company as it digitizes its operations.
Having access to all of your data allows you to optimize your entire operation and reduce costs, added Merritt. Every department within an organization can benefit from the new opportunities offered by data.
Asked about the flood of new big data companies like Snowflake, Merritt explains that while there are a lot of players, Splunk has been around for 15 years and is still among the fastest growing companies in its history. cut. He said they have the expertise and the services their clients need.
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Out of band: slice
In his ‘Off The Tape’ segment, Cramer spoke with Ilir Sela, founder and CEO of privately-held Slice, the technology platform for local pizza operators that offers delivery for just $ 1.95 per order. .
Sela said Slice takes a digital, user-friendly approach to helping local pizza vendors excel in our new digital world. He said that by providing all-in-one service, Slice can make local restaurants more efficient and put them in a strong position.
Cramer said Slice helps small businesses survive in a world increasingly opposed to them.
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From technicians to cyclists
In its No-Huddle Offense segment, Cramer welcomed viewers into the rotation, where investors ditch high-tech stocks in favor of the safety of slow, steady cyclicals.
Just look at the chart of one of the cloud stocks, like Workday (WEDNESDAY) – Get the report, Service now (NOW) – Get the report or Adobe Systems (ADBE) – Get the report and you’ll see the recent declines as investors tire of the volatility. But compare these charts to a chart like FreeportMcMoran (FCX) – Get the report, and you’ll see a whole different story. Shares of the gold and copper mining giant are up 29% for the year, in a straight line from their March lows. Cramer said Freeport might not be gaining attention, but is growing steadily and is exactly the kind of security action investors need.
Here’s what Jim Cramer had to say about some of the actions that callers offered during the Mad Money Lightning Round Friday night:
3d systems (DDD) – Get the report: “You can own this one, but I don’t think it’ll get you more than a dollar or two.” ”
CBRL Group (CBRL) – Get the report: “There aren’t a lot of trips, so I’m not a fan. ”
Technologies Zebra (ZBRA) – Get the report: “This company is a big company. As stocks go down, I would rack up more. “
Connect the power (PLUG) – Get the report: “It’s an exciting business. ”
Nokia (ENOUGH) – Get the report: “This business is not as good as it used to be. “
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At the time of publication, Cramer Action Alerts PLUS held a position in COST, NKE, AAPL.