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Morning Bell With Jim Cramer: Buy Sonos

Jim Cramer shares stock market news including MasterCard's support for Bitcoin, how to trade Sonos after earnings, and the U.S. semiconductor chip shortage

Stocks are down Friday morning after the S&P 500 and Nasdaq closed Thursday at record highs and we're starting to see stocks come down from those highs.

In the last episode of Mad Money, Jim Cramer said you don't need to be a rebel to win at investing. You need to do the research and be patient for genuine opportunities.

TheStreet's Katherine Ross and Cramer are talking about MasterCard's support for Bitcoin, how to trade Sonos after earnings, and the U.S. semiconductor chip shortage.

Mastercard: Buy Or Sell?

Bitcoin hovered near record territory on Thursday, holding gains made earlier in the week after Mastercard  (MA) - Get Mastercard Incorporated Report said it was following in Tesla’s  (TSLA) - Get Tesla Inc. Report footsteps to both support the cryptocurrency and utilize it.

Cramer said Mastercard's statement was a bit opaque about what happens with Bitcoin. "It was very glib, I felt. I was disappointed. I think they really need to come out and explain this because it is such an important thing."

Sonos: Buy Or Sell?

Sonos  (SONO) - Get Sonos Inc. Report posted better-than-expected fiscal first-quarter earnings and guidance that sparked a flurry of price target upgrades by analysts.

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TheStreet Recommends

Analysts at D.A. Davidson raised their price target on Buy-rated Sonos to $45 from $24. The firm is “encouraged by the impressive demand and the willingness of customers to wait for their products.”

Cramer said COVID-19 turned out to be a showcase for Sonos. "This is not a stock that's going away, it's just begun. You might not have known Sonos until this. I felt this way about Spotify."

Semiconductor Shortage

President Joe Biden is reportedly expected to sign an executive order to address the shortage of semiconductors in the coming weeks.

Cramer said a lot of the semiconductor companies don't want to build in the U.S. because it's cheaper to build overseas with less expensive workers. "To be able to build those capabilities here it will have to be heavily subsidized. The interest of semiconductor companies is not geopolitical, it's simply profit-oriented."

MasterCard is a key holding in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer.