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Jim Cramer's 'Mad Money' Recap: The Battle for the Market's Soul

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NEW YORK (TheStreet) -- The tug of war for the heart and soul of the market continued today, Jim Cramer told his Mad Money TV show viewers Tuesday. But while most stocks ended the day lower, for a brief moment this morning investors got a glimpse of what the market is really craving... value.

Cramer said the market continues to bet on good, old-fashioned value, while it also continues to eschew anything that doesn't have sizable earnings per share. Nothing illustrates this point better, he said, than Apple (AAPL), a stock Cramer owns for his charitable trust, Action Alerts PLUS, versus Twitter (TWTR).

Apple shares rallied this morning to highs over $600 a share before succumbing to the market's downward pull, Cramer said. But in the end shares were only down 1% and are still up 6% for the year. Compare that to Twitter's hideous 18% decline today and its 50% haircut for the year.

Must Read: Jim Cramer's 'Mad Money' Recap: Next Week's Game Plan

What does the market like about Apple and dislike about Twitter? Earnings. Cramer said Apple is advancing on growing earnings per share along with an opportunistic buyback and a rising dividend. Yet, the company still trades at just 14 times earnings.

Compare that to Twitter, which has no earnings to speak of, and instead of retiring shares saw tens of millions of shares flood the market as its IPO lockup period expired. Cramer said he was pleased to hear that some to Twitter's management and a few large shareholders pledged not to sell their shares, but that wasn't enough to stop this wave of selling.

Cramer said that Twitter, even at these levels, remains expensive on just about every metric. This market craves value, he said, and those that don't have it will continue to get annihilated, as did Fire Eye (FEYE) and Yelp (YELP).

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off on the four-year anniversary of the now infamous "flash crash," the 30 minutes of insanity that sent the markets plummeting 900 points only to recover minutes later.

Cramer recalled that he was on the air at CNBC when the markets started falling, which prompted his call to buy Procter & Gamble (PG), which had just sunk from $61 to below $49.

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SYM TRADE IT LAST %CHG
PBI $20.92 0.00%
ZBRA $107.63 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%

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