NEW YORK ( TheStreet) -- TripAdvisor (TRIP - Get Report) beat on top-line expectations and reported in-line earnings per share results. TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, called TripAdvisor the new way for travelers to make their reservation.
Taking it one step further, Cramer called TripAdvisor, Yelp (YELP), Expedia (EXPE), and Priceline.com (PCLN) the "backbone of the travel and leisure economy that's been revolutionized by the Internet."
He considered TripAdvisor one of the social stocks that can "make or break any enterprise," since user reviews have so much influence over potential customers.
Turning to Walgreen (WAG), Cramer said CVS Caremark's (CVS) decision to stop selling tobacco products is pushing shares of Walgreen higher. But there is a different topic of conversation floating around Walgreen: tax inversion.
If the company were to become a foreign entity -- which may happen if it buys out the rest of the Switzerland-based pharmaceutical retailer Alliance Boots, of which it currently owns 45% -- its tax rate could drop to 20% or below from the current 35%. The move would make sense, considering a lot of the company's profits come from overseas.
Cramer reminded investors that a similar move played out with Perrigo (PRGO), when it bought out Elan, which is based in Ireland. Nobody thought the tax gains would really matter, he said. But eventually it gave a solid boost to the bottom line and investors pushed the stock higher.- - Written by Bret Kenwell in Petoskey, Mich.