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Cramer reminded viewers the markets are made up of traders and investors. Traders, he said, look for catalysts like a potential upside earnings report, then sell their positions after the catalyst has occurred, whether or not they were correct. Investors, on the other hand, look at the big picture and focus on longer-term decision making.
But Cramer said that missing estimates isn't a big deal for Google as it's one of the few companies that doesn't offer its own guidance. That means the estimates it "missed" were merely analysts' best guesses.
What is important, however, is that Google trades for just 17 times earnings, but has a 19% growth rate, making it very inexpensive, and even more so with today's short-term sell off. Investors should be seizing this opportunity, he said, to start or add to their positions.
The same applies to IBM (IBM), another AAP holding, Cramer continued, and another company that missed estimates and was sold off by traders. Cramer said one man's trash is indeed another man's treasure and IBM is now a diamond in the rough for those investors with a little patience.
Executive Decision: Nick Pinchuk
For his "Executive Decision" segment, Cramer sat down with Nick Pinchuk, chairman, president and CEO of Snap-on Tools (SNA - Get Report), which just delivered an eight-cents-a-share earnings beat on better-than-expected revenue. Shares of Snap-on are up 23% since Cramer last spoke with Pinchuk in July.
Pinchuk said he thinks of Snap-on as a technology company, one that is constantly innovating. The company has learned that many of its automotive tools translate well into other industries, like aerospace. He said Snap-on's new smart toolbox is alerting airplane mechanics when tools are missing and may have been left inside an engine, for example.
Pinchuk was also bullish on Europe, with sales in France, Germany and Spain all on the rebound. During the recession, Pinchuk said he had faith that growth would return; instead of shuttering production, he focused on efficiency, a decision that's paying off big now.