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Cramer's Mad Money Recap: J&J, Netflix, Nvidia, Tesla

TheStreet
TheStreet
 2021-10-16
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It's finally time to get bullish, because the cavalry is finally here. Those were Jim Cramer thoughts for his Mad Money viewers Friday after a two-day rally that seems to have finally broken the gloom on Wall Street. It's time to get constructive, Cramer said, because there's another gauntlet of earnings ahead.

Cramer's game plan for next week's trading begins on Monday, with Albertsons (ACI) - Get Albertsons Cos. Inc. Report, the only grocery store worth owning.

Over on Action Alerts PLUS, Bob Lang and Chris Versace are wondering if there's going to be a jolly holiday season this year, what with soaring energy prices, along with higher food and gas prices. They're keeping a close eye on what this means for investors and their positions in Costco (COST) - Get Costco Wholesale Corporation Report, Amazon (AMZN) - Get Amazon.com, Inc. Report and Mastercard (MA) - Get Mastercard Inc. (MA) Report. Find out more and get their latest investing insights on Action Alerts PLUS.

Next, on Tuesday, we'll see earnings from Johnson & Johnson (JNJ) - Get Johnson & Johnson (JNJ) Report and Procter & Gamble (PG) - Get Procter & Gamble Company Report, along with Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report, and an analyst day for Ulta Beauty (ULTA) - Get Ulta Beauty Inc Report. Cramer was bullish all around, but said J&J would be his favorite. Also on Tuesday is United Airlines (UAL) - Get United Airlines Holdings, Inc. Report, followed by American Airlines (AAL) - Get American Airlines Group, Inc. Report and Southwest Airlines (LUV) - Get Southwest Airlines Co. Report on Thursday. With travel finally returning, now might be the time for the airlines.

Wednesday's earnings included ASML Holdings (ASML) - Get ASML Holding NV ADR Report, Lam Research (LRCX) - Get Lam Research Corporation (LRCX) Report, Abbott Laboratories (ABT) - Get Abbott Laboratories Report and Tesla (TSLA) - Get Tesla Inc Report in the bull camp. Cramer said it's not the time to own Verizon (VZ) - Get Verizon Communications Inc. Report or AT&T (T) - Get AT&T Inc. Report, which reports on Thursday. He was also not bullish on CSX (CSX) - Get CSX Corporation Report or Union Pacific (UNP) - Get Union Pacific Corporation Report, as the railroads are likely to get worse before they get better.

Thursday, the bulls return with Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill, Inc. Report and Snap (SNAP) - Get Snap, Inc. Class A Report, but Cramer advised against buying Intel (INTC) - Get Intel Corporation (INTC) Report in favor of rivals Nvidia (NVDA) - Get NVIDIA Corporation Report and Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report.

The bulls round out the week on Friday with three Cramer favorites, Honeywell (HON) - Get Honeywell International Inc. (HON) Report, American Express (AXP) - Get American Express Company Report and oil services giant Schlumberger (SLB) - Get Schlumberger NV Report.

Counting Bank Earnings

Now that all of the major banks have reported earnings, it's time for Cramer's quarterly roundup of his favorites. Spoiler alert: There wasn't a lot he didn't like.

JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. (JPM) Report delivered solid results, but the stock came into earnings season hot, limiting its upside. Shares are up 31% for the year, but the company is spending more to fight off the challenges from fintech.

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Bank of America (BAC) - Get Bank of America Corp Report saw stunning 58% earnings growth this quarter, making it "unstoppable" in Cramer's book. As for Morgan Stanley (MS) - Get Morgan Stanley (MS) Report, the company is transforming itself into a consistent wealth management powerhouse that was even able to shrug off a downgrade Friday. Shares are up 49% for the year.

Wells Fargo (WFC) - Get Wells Fargo & Company Report is loathed on Wall Street, but Cramer felt the bank may finally be ready to put its past behind them and start playing offense.

Finally, Goldman Sachs GS reported a monster quarter Friday with blowout earnings that once again cemented its position as one of the strongest banks out there.

Executive Decision: Amazon Web Services

In his first "Executive Decision" segment, Cramer sat down with Adam Selipsky, CEO of Amazon's (AMZN) - Get Amazon.com, Inc. Report Web Services, the cloud services giant that's now a $60 billion company, having grown 37% last quarter.

Selipsky said that AWS is well placed within Amazon, an arrangement that allows them to focus on customers and innovation and not get distracted by the things stand-alone companies have to worry about. AWS began serving customers in 2006 and remains an innovator in the industry with robust capabilities. The company even designs its own semiconductors to boost performance.

When talking about pricing, Selipsky noted that AWS has reduced prices 109 times over its history, often in the absence of competitive pressures to do so. Any time AWS is able to reduce costs, they pass those savings onto customers, he said.

AWS is very proud to have been instrumental in the development of Moderna's (MRNA) - Get Moderna, Inc. Report COVID vaccine. What had previously taken 20 months to complete was done in 42 days, Selipsky said, which proves that when technology and innovation meet the cloud, anything is possible.

Speaking of the pandemic, Selipsky noted that during March and April of 2020, nearly five years of digital transformation occurred at companies around the globe.

Am I Diversified?

In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.

The first portfolio included Norwegian Cruise Line Holdings (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report, Spirit Airlines (SAVE) - Get Spirit Airlines, Inc. Report, DraftKings (DKNG) - Get DraftKings Inc. (DKNG) Report, Uber (UBER) - Get Uber Technologies, Inc. Report and Ford (F) - Get Ford Motor Company Report. Cramer said this portfolio shouldn't have both Norwegian and Spirit. He suggested selling Spirit and replacing it with a healthcare stock like UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated Report.

The second portfolio's top holdings included Amazon (AMZN) - Get Amazon.com, Inc. Report, Salesforce (CRM) - Get salesforce.com, inc. Report, Home Depot (HD) - Get Home Depot, Inc. (HD) Report, Coca-Cola (KO) - Get Coca-Cola Company Report and Walt Disney DIS. Cramer said this portfolio didn't require any changes.

The third portfolio had Amazon, Ford, JPMorgan Chase, Walt Disney and Boeing (BA) - Get Boeing Company Report as its top five stocks. Cramer blessed this portfolio as properly diversified.

The fourth portfolio's top stocks were CSX (CSX) - Get CSX Corporation Report, Pfizer (PFE) - Get Pfizer Inc. Report, Robinhood (HOOD) - Get Robinhood Report, Eaton (ETN) - Get Eaton Corp. Plc Report and Zimmer Biomet (ZBH) - Get Zimmer Biomet Holdings, Inc. (ZBH) Report. This portfolio was also perfectly diversified.

The Future and Fintech

In his "No Huddle Offense" segment, Cramer said there's a reason he's so bullish on cryptocurrencies and fintechs like Square (SQ) - Get Square, Inc. Class A Report. It's because those are the places younger investors are putting their money.

Young people don't trust big banks, Cramer said, but they're flocking to the likes of PayPal (PYPL) - Get PayPal Holdings Inc Report and Square. They don't believe in using gold either, they'd rather invest in Bitcoin. But with Bitcoin ETFs around the corner, Cramer said it's likely time to take profits. He'd rather invest in Affirm (AFRM) - Get Affirm Holdings Report, which represents the next big wave of financial tech.

Lightning Round

Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Friday evening:

GrowGeneration (GRWG) - Get GrowGeneration Corp. Report: "No. We rode it up and we're not looking back."

Biohaven Pharmaceuticals (BHVN) - Get Biohaven Pharmaceutical Holding Company Ltd. Report: "Their migraine pill is enough to carry this company for a long time."

AEO (AEO) - Get American Eagle Outfitters, Inc. Report: "I want you to double down. They have a 3% yield and they tell a great story."

RadNet (RDNT) - Get RadNet, Inc. Report: "This is a high-multiple stock, but it's OK."

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