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Morning Bell With Jim Cramer: Is Cryptocurrency Regulation Coming?

Jim Cramer shares stock-market news including how to trade PepsiCo after earnings, Dell's stake sale and why cryptocurrencies need more regulation.

Stocks are rising Friday after China's record first-quarter growth has world stocks testing all-time highs as U.S. markets continue to power ahead on corporate earnings and recovery bets.

In the last episode of Mad Money, Jim Cramer said investors are taking a breather on cyclicals and turning their attention back to technology and healthcare stocks.

TheStreet's Katherine Ross and Cramer are talking about how to trade PepsiCo after earnings, Dell's stake sale and why cryptocurrencies need more regulation.

PepsiCo: Buy Or Sell?

PepsiCo  (PEP) - Get PepsiCo Inc. Report posted stronger-than-expected first-quarter earnings Thursday as its Frito-Lay snacks division continued to power bottom-line gains as millions remained working from home during the coronavirus pandemic.

Cramer said the stay-at-home people do a lot of snacking. "If you reopen the economy I'm not quite sure what it's going to mean. Pepsico was very circumspect about what would happen when America reopens. They need a ratio of people not going back to the office and snacking and then having people snack at work. If that can be maintained then the numbers will be fine," Cramer added.

Dell Technologies: Buy Or Sell?

Dell Technologies said Wednesday it will spin off its 81% stake in VMware  (VMW) - Get VMware, Inc. Report in a deal that will create two standalone companies and result in a special dividend payment to Dell of between $9.3 billion and $9.7 billion.

The deal will result in a special cash dividend for shareholders of up to $12 billion.

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Early Thursday the computer maker received price target upgrades from Deutsche Bank and J.P. Morgan.

Cramer said he is a huge believer in Michael Dell. "I've liked Dell forever. I couldn't figure out how he was going to get more value out of VMware but of course, he is making them pay a huge sum. And that's going to help pay down Dell's considerable debt," he said.

Cramer also added that he wouldn't want to own VMware.

Cryptocurrency Regulation

Bitcoin raced ahead more than six times to almost $63,000 Wednesday. It was recently trading at $61,039, according to Yahoo Finance data. 

Dogecoin has more than doubled Friday to an all-time record of 30 cents. Dogecoin may have been helped by an outage at trading app Robinhood that impacted trading in cryptocurrencies on its platform in the U.S. late Thursday.

Cramer advocated for more regulation in the crypto space. "[Brian] Armstrong (Coinbase CEO) is the gold standard. But there are a lot of companies in Bitcoin that maybe shouldn't be trusted. Apart from Coinbase, we don't really have a lot of clarity in terms of what companies are doing. Digital wallets are offering such a high-interest rate on their cash. We've got to be sure they are doing ok," he added.

None of the stocks mentioned in this article are key holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.