If you really want to beat the professional money managers at their own game, you don't do it with GameStop (GME) - Get Report, Jim Cramer explained to his Mad Money viewers Wednesday. You do it, by investing in high-quality companies using the magic of fractional shares.
Gone are the days when you needed to spend $1,000 to buy a $1,000 stock. With fractional shares, you can start buying with any amount and simply add to your position over time. That's why Cramer debuted a new list of over-$500 stocks that he said should be in every individual investors' portfolio.
Amazon (AMZN) - Get Report isn't just a winner from the pandemic, it's changed how many people shop. Chipotle Mexican Grill (CMG) - Get Report has emerged as one of the biggest delivery and takeout giants. And The Trade Desk (TTD) - Get Report has become the advertising technology to reach cord cutters.
Cramer said investors should consider buying fractional shares of Intuitive Surgical (ISRG) - Get Report and Align Technology (ALGN) - Get Report, both of which have products that are in high demand. Speaking of demand, Tesla (TSLA) - Get Report also makes the list of fast growers with a stock price well over $500 a share.
And when it comes to the cloud, investors should consider Service Now (NOW) - Get Report, Netflix (NFLX) - Get Report, HubSpot (HUBS) - Get Report and Alphabet (GOOGL) - Get Report, all of which also have shares above $500.
These are the companies individuals should be investing in, Cramer concluded, not GameStop and the other meme stocks.
Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.
Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning.
Executive Decision: Upwork
Brown said the freelance trend started well before the pandemic began, but it really exploded last year. The employment paradigm has shifted, she said, and there are now over 53 million people freelancing in the U.S.
People have learned that the employment pact of previous generations is broken and employees cannot count on their employers to take care of them. At the first sign of recession or hardship, layoffs and furloughs run rampant. Meanwhile, employers have discovered they can't limit themselves to just full-time employees. They need highly-skilled workers, but they also want the flexibility only a freelancer can provide.
Brown said that the professionals on Upwork are college-educated, highly-skilled individuals earning high wages and building their own independent businesses.
Executive Decision: MP Materials
For his second "Executive Decision" segment, Cramer spoke with one of his favorite SPACS, MP Materials MP, by checking in with its chairman and CEO, James Litinsky.
Litinsky said there's a new gold rush happening as our country rushes towards electrification and it's crucial that America takes control of its supply chain, including rare Earth materials. MP Materials is the second largest producer of rare Earth minerals, he said, but most of our magnets are still made in China.
Magnets are a key component of not only electric vehicle motors, Litinsky said, but also for drones, wind turbines and countless other applications.
Unlike many recent SPACS, MP Materials isn't filled with hopes and promises, Litinsky said. The company is profitable today and has all of the capital it needs to stay that way and grow.
On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
End of the SPAC bubble
The bubble in special purpose acquisition companies, or SPACs, may soon be coming to an end, but Cramer said not all SPACs are created equal. He highlighted five previous SPAC recommendations and added five new ones to his list of those that can still be bought on any pullback or market weakness.
Cramer said as long as you're patient and buy gradually, investors can still be buyers of MP Materials MP, a rare Earth mining company. He also still recommended Star Peak Energy STPK, which will be merging with the energy storage company Stem. Others on his recommended list included Porch PRCH, pretzel maker Utz (UTZ) and DraftKings (DKNG) - Get Report.
Cramer's five new SPAC recommendations were fintech Sofi, which will be merging with IPOE, network equipment maker Vertiv (VRTV) - Get Report, software maker OpenLending LPRO, Skillz (SKLZ) - Get Report, which rallies 6.4% today, and AppHarvest APPH.
The Age of Innovation
In his No Huddle Offense segment, Cramer said we are in a golden age of innovation, one fueled by a bountiful stock market that's funding the technologies that will power our future.
Investors of Churchill Capital IV (CCIV) - Get Report may have lost money Wednesday as the company merges with electric vehicle maker Lucid Motors, but the fact that Lucid was able to raise a billion dollars to advance its technology should be applauded. Other innovators, like QuantumScape (QS) - Get Report hope to revolutionize batteries.
If even 10% of these electric vehicle companies survive, that's a big win for America, Cramer said. Sure, not all investors will be winners, but in the end, we all win from innovation in autos, medicine, the cloud and more.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Wednesday evening:
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramer's Action Alerts PLUS had a position in AMZN, GOOGL, COST, ABT.