It's not as if the established players don't have the capital, Cramer noted. Facebook (FB) clearly had the capital for What'sApp and Google (GOOG) just bought an aerial drone company, of all things. So why aren't they snapping up GrubHub (GRUB) or Zoe's Kitchen (ZOES)?
Cramer said once these companies go public, their valuations simply get too high. Zillow
(Z) could buy Trulia
(TRLA), for example, and own the online real estate market in perpetuity, but now that Trulia is public that deal would be very costly.
That makes buying up companies pre-IPO the thing to do, Cramer concluded, which is why the fact it's not happening should raise eyebrows.
Off the Tape
In his "Off The Tape" segment, Cramer sat down with Daymond John, founder and CEO of the privately held FUBU, as well as co-host of Shark Tank and the self-proclaimed "king of branding." Back in April 2010, John created his "Lifestyle Brand Index," a collection of stocks that is now up 92%, beating the S&P 500 and its growth of 54%.
John said that Samsung (SSNLF) still has the smart phone buzz and Apple's (AAPL) iPhone is still lagging behind. He was still bullish on both Under Armour (UA) and Facebook, two stocks in his 2010 index.John added two new names to his index, Walgreens (WAG) and Tesla Motors (TSLA), and also touted AOL (AOL) and Netflix (NFLX) as the content delivery systems of the future. Finally, John and Cramer were both bullish on Whole Foods Markets (WFM) and Starbucks (SBUX).