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Best of the Debate: Cramer's 'Mad Money' Recap (Wednesday 9/30/20)

Almost nobody liked the first Trump-Biden debate, says Jim Cramer. But the stock market loved what it heard -- or didn't hear.

Everyone seemed to hate the first presidential debate, Jim Cramer told his Mad Money viewers on Wednesday night -- except for the stock market.

While a late-day slip sapped some of the gains, the market ended notably higher Wednesday. So what did the candidates say that got investors so excited? It was more about what they didn’t say, according to Cramer. 

President Trump and Democratic nominee and former Vice President Joe Biden avoided attacks on the healthcare industry. That’s what allowed Anthem  (ANTM) - Get Anthem Inc. Report, Centene  (CNC) - Get Centene Corporation Report, Cigna  (CI) - Get Cigna Corporation Report, UnitedHealth Group  (UNH) - Get UnitedHealth Group Incorporated (DE) Report and CVS Health  (CVS) - Get CVS Health Corporation Report to rally.

They also did not attack the banking industry, which triggered a rally in financial stocks like Discover Financial  (DFS) - Get Discover Financial Services Report and Goldman Sachs  (GS) - Get Goldman Sachs Group Inc. (The) Report

Finally, they didn’t attack China, which allowed tech investors to breathe a sigh of relief, even though Micron  (MU) - Get Micron Technology Inc. Report reported a pretty downbeat quarter. 

There were even some positives in what they did say, as Trump touted optimism about a vaccine for COVID-19. Throw in a stimulus bill and it was enough for investors to ignore the negatives, Cramer said. 

At the end of the day, Wall Street was worried about a whole host of negative catalysts from this debate, almost none of which came to fruition. That’s good for stocks. 

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Executive Decision:

For one of his "Executive Decision” segments, Cramer spoke with Marc Benioff, founder, chairman and CEO of  (CRM) - Get Salesforce Inc. Report

Benioff was on the show to talk about the company’s website, which is “an all-new suite of solutions and advisory resources to help businesses and community leaders around the world to support the health and wellbeing of their employees.” 

The company is now adding a vaccine component to the website. While that will include already available vaccines, such as for the flu, it’s gearing up for the release of COVID-19 vaccines. 

“Vaccinations are one of the most important things we can do for public health,” Benioff explained. 

When the COVID-19 vaccine is released, there will likely be many of them. We need to leverage technology to separate the “wheat from the chaff,” finding out which vaccines are the best, he said. 

This will be one of the largest technological and logistical challenges in the world, Benioff said, and Salesforce is up for the fight. 

He was mindful to reiterate that Salesforce will not be the one administering the vaccinations, but instead “providing the information technology platforms — the applications, the cloud.”

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Many companies are going to play a role in the success of a vaccine, possibly even Snowflake  (SNOW) - Get Snowflake Inc. Class A Report. Salesforce is an investor in the company and Benioff explained that Salesforce continues to invest in its ecosystem where it sees opportunity. 

Executive Decision: DocuSign

In another “Executive Decision” segment, Cramer spoke with Dan Springer, CEO of DocuSign  (DOCU) - Get DocuSign Inc. Report

DocuSign reported a magnificent quarter at the beginning of the month, Cramer said. However, because the stock rallied so hard into the event, it’s down about 25% from the highs. Despite that, shares have nearly tripled on the year. 

It’s unlikely that the world will go back to its pre-coronavirus ways of life. At least in the way it pertains to DocuSign’s business. 

Simply put, the digital transformation has made it easier for employees and customers, while saving users a ton of money, Springer said. 

Many jobs don’t need to be in the office, but some do. As a result, the post-coronavirus world will likely see some of these temporary work-from-home jobs stay at home, while some employees return to the office. It will likely be a mix of the current work environments, he reasoned. 

The company is now starting to offer online notaries, but even more exciting is DocuSign’s artificial intelligence offering. 

When a party receives an agreement to sign, DocuSign’s AI product can scan that document for terms that are “non-industry standard” or non-standard for what one’s specific company does, Springer explained. 

This can help speed up the process and allow parties to get right the key points of the agreement. These smart contracts are a game-changer, Cramer added. 

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Know Your IPO

The third quarter of 2020 was the biggest quarter of IPOs since 2000, Cramer said. On Wednesday, two companies went public via direct listings, that being Palantir  (PLTR) - Get Palantir Technologies Inc. Class A Report and Asana  (ASAN) - Get Asana Inc. Class A Report

Cramer took a closer look at the latter, with Asana being a fast-growing cloud software company that helps management orchestrate all sorts of projects, big and small. As companies grow, coordinating among coworkers takes away more and more time from actual productive work. 

Asana’s product saves time and improves production, while it also has a coronavirus component with so many remote employees working from home. 

In the first half of 2020, revenue grew more than 60%. It’s “growing like a weed,” Cramer said, but so are the company’s losses. Based on Wednesday’s closing price, Asana trades at 19 times sales. 

So not only are the losses a concern, but the valuation is high, too.

When it comes to software, there’s something known as the “Rule of 40.” Cramer said that when adding the company’s revenue growth to its operating margins, investors want to see that figure north of 40. Above 40 and the stock deserves a deeper look. Below 40 isn’t good, he said. 

Asana’s 2019 score rang in at 37 — close but above 40. In the first half of 2020 though, that score plunged all the way down to 12. That’s all Cramer needed to see to take a pass on the stock.

There’s simply too much competition and too high a valuation to consider buying this one right now, he reasoned. 

Is Boeing Back?

On the show’s No-Huddle Offense segment, Jim Cramer said it was time to buy shares of Boeing  (BA) - Get The Boeing Company Report. Cramer was just as bewildered by the statement as you may be, but let's take a closer look. 

The head of the FAA was on a test flight of the 737 MAX and it reportedly went well. If Boeing can get the 737 MAX back in action, that’s going to make a world of difference for its business.

Turning to the airline industry, Cramer highlighted some research that he was admittedly skeptical of, but even if it’s remotely accurate, it could encourage more flying. It said that just 19 cases of COVID-19 were from airports or airplanes. 

Maybe it’s a vaccine or perhaps it’s Abbott Laboratories'  (ABT) - Get Abbott Laboratories Report rapid test and mobile application that gets flying back in motion. But if there’s a return to flight traffic, Boeing’s going to rip.

It helps that Congress -- while failing to put together a stimulus plan for small businesses and the little guys -- is bailing out the airlines again. Investors can always count on that. 

But here’s the thing: Investors who want to ride the potentially huge rally in Boeing  need to buy the stock before the company writes its comeback story. If you wait to buy when the comeback is in motion, you’ll have already waited for too long, Cramer cautioned.

Lightning Round

Here’s what Jim Cramer had to say about some of the stocks during the Mad Money Lightning Round: 

Seagate Technology  (STX) - Get Seagate Technology Holdings PLC Report: “It’s very inexpensive and has a good dividend.” 

AbbVie  (ABBV) - Get AbbVie Inc. Report: “Yes, it’s a buy. The stock will go up once its pandemic-related issues fade.” 

Novavax  (NVAX) - Get Novavax Inc. Report: “Sell half here, if you have a great cost basis.” 

Snowflake: “It’s a great company, but has a very expensive valuation. It’s too expensive for me, but I can’t fight it.” 

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At the time of publication, Cramer's Action Alerts PLUS had a position in CRM, ABBV, CVS, ABT.