Continuing with a third "Executive Decision" segment, Cramer also spoke with John Riccitiello, CEO of
(EA - Get Report)
, a stock that's down 30% so far this year, trading at just nine times earnings despite $4 a share in cash on hand.
Riccitiello said that he feels investors will eventually catch up with Electronic Arts' performance, saying that as the company transforms into a larger social and mobile gaming player, investors will see the value. As that change is taking place, however, Riccitiello said that the markets usually discount a stock.
Riccitiello compared his business to that of rival
, a leader in the social and mobile gaming space. He said that while Zynga is a good business, Electronic Arts is a great one with better intellectual property, successes on multiple platforms and franchises like
. While Zynga grows through acquisition, said Riccitiello, Electronic Arts can grow organically.
Riccitiello also discounted worries about the company's latest
release. He said that
remains a solid success and is a top 10 franchise for the company, but is not in the top five, as some analysts mistakenly expected.
With Electronic Arts expected to release a total of 41 mobile and social apps this year alone, Cramer said that Electronic Arts is among the cheapest stocks he follows.
Oh what a difference a day makes. That was certainly the case with
(VRTX - Get Report)
, a stock that surged 55% yesterday on positive phase II results for the company's latest cystic fibrosis drug. Cramer's take, this speculative stock is still worth buying on any pullback.
The stock gained another 10% today after two more analyst upgrades on the prospects of its treatment for cystic fibrosis. Cramer said with Monday's news, Vertex should be viewed as a completely different company. Last year, his recommendation was based on Vertex' hepatitis C business, but today the company's opportunities to treat cystic fibrosis are all that matters.
So why was Monday's news so important? Cramer said it's because the news was a game changer for the company and it was news that Wall Street was totally not expecting. He said the analysts didn't even factor in the drug's potential after disappointing phase I trials, but now the drug could be a blockbuster.