When it comes to earnings and growth, Jim Cramer told his Mad Money viewers Wednesday that nearly two-thirds of his charitable trust, Action Alerts PLUS, would do better under a Joe Biden presidency than Donald Trump. The reason? China.
Cramer said with Biden leading the polls and the election only 20 days away, it's prudent to think about your portfolio with an eye looking past Nov. 3. One of the signature features of the Trump presidency has been a trade war with China. But under Biden, our relationship with China is likely to improve. That's great news for a host of different industries.
Apple (AAPL) - Get Apple Inc. (AAPL) Report has been walking a tightrope for years under Trump, Cramer said, but a Biden victory would be welcomed news for the iPhone maker. The same goes for the semiconductors, like Broadcom (AVGO) - Get Broadcom Inc. Report and Nvidia (NVDA) - Get NVIDIA Corporation Report, which are trying to make acquisitions.
Thawed relations with China is also good for those relying on China for growth. That means Starbucks (SBUX) - Get Starbucks Corporation Report, Nike (NKE) - Get NIKE, Inc. (NKE) Report, Boeing (BA) - Get Boeing Company Report and Walt Disney Co. (DIS) - Get Walt Disney Company Report would all head higher as well. Among the financials, Cramer said Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report and Mastercard (MA) - Get Mastercard Inc. (MA) Report would be China winners.
As for the winners under Trump, Cramer said the oil, gas and coal industries would be his top picks, unfortunately, any Trump bounce will be met with long-term secular headwinds.
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.
What About Fastly?
After a surprise pre-announcement lowering its quarterly revenue guidance, shares of content delivery network Fastly (FSLY) - Get Fastly, Inc. Class A Report plunged 26.9% in after-hours trading. But are they now a buy? Cramer weighed in.
Cramer said he's long been a fan of Fastly, after interviewing the CEO back in May. But after shares rallied 32% in just the past month, even Cramer warned that shares were getting ahead of themselves. Momentum stocks that are priced for perfection are highly dangerous, he said, and trading at 32 times sales, Fastly was among the highest-valued cloud stocks he followed.
So what should investors do with Fastly now that shares have plummeted? Right now, nothing. Cramer said stocks with negative pre-announcements never complete their selling in a single day. It will take several days for the momentum shareholders to exit and the stock to form a bottom.
But looking into the future, Cramer said he remains bullish on Fastly. The reason for today's announcement was reduced revenue from its largest client, TikTok. Cramer said this is likely just a temporary setback for Fastly and may have already corrected itself. That's why he's still bullish on the long-term outlook for Fastly, after all of the sellers have finished their selling and shares return to more normal valuations.
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Executive Decision: Medtronic
In his first "Executive Decision" segment, Cramer spoke with Geoff Martha, CEO of Medtronic (MDT) - Get Medtronic Plc (MDT) Report the medical device maker that just wrapped up its annual analyst day.
Martha explained that Medtronic has its best pipeline ever and his company has a great mission. He said the culture at Medtronic is about being bold, thinking big and making big bets on what's possible in the future.
Medtronic has made six acquisitions this year alone, totaling $1.6 billion, to help advance the science of medical devices.
Martha was bullish on his company's deep brain stimulation technology, which is able to sense brain signals and aid in therapies for Parkinson's disease, among other neurological conditions.
Medtronic is also disrupting the back and spine surgeries using robotics, Martha said. Currently, spine surgery is an art form that relies on the skills of your surgeon. But soon, he said, it will become a science that robots will be able to perform even better.
Executive Decision: VMware
For his second "Executive Decision" segment, Cramer also spoke with Sanjay Poonen, COO of VMware (VMW) - Get VMware, Inc. Class A Report, the cloud software stock that's lagged its peers and is only up 2.5% for the year.
Poonen said there are three big trends at VMware. The first is bringing artificial intelligence to the masses using new technologies and chips from Nvidia. The second trend is cybersecurity for the data center. And the third is multi-cloud technologies that bridge the gap between public and private clouds from all the major providers.
When asked about cybersecurity, Poonen said VMware has partnered with companies like Zscaler (ZS) - Get Zscaler, Inc. Report and Okta (OKTA) - Get Okta, Inc. Class A Report to protect workloads in the data center and also to protect employees who are now working from home. He said they aim to make cybersecurity "Sesame Street simple" for companies of all sizes.
VMware is also active in the 5G wireless transition. Poonen said VMware's software is powering core and radio networks for telcos like Vodafone (VOD) - Get Vodafone Group Plc Sponsored ADR Report and they are looking to expand into the other 300 telco providers around the globe.
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.
Washington, Listen up
In his "No-Huddle Offense" segment, Cramer said there are a lot of businesses in our economy that are in trouble through no part of their own and it's up to Congress to save them.
Cramer's been arguing for months that our economy needs a second stimulus. He said our largest companies can weather this pandemic, but for the smaller, non-essential restaurants, stores and inns? They simply cannot survive with social distancing. That's not to mention all of those folks losing their jobs in the hospitality and travel industries.
Cramer said it's up to Congress to acknowledge the pain being felt by millions of Americans and reach a compromise to help those to need it the most.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Wednesday evening:
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, NVDA, SBUX, MA, DIS, GS.