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Cramer's Mad Money Recap: Coinbase, Gamestop

Jim Cramer says stocks are only pieces of paper, they shouldn't be worshipped. Investors need to be disciplined, not emotional.
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It's a bad idea to turn your portfolio into a religion, Jim Cramer warned his Mad Money viewers Wednesday, as he sounded off against the "true believers" that refuse to sell their favorite assets at any price.

This "messianic" trading began earlier this year when the Reddit traders piled into GameStop  (GME) - Get GameStop Corp. Class A Report, vaulting the stock higher and higher until finally, the hedge fund short sellers were forced to relent. These same traders hoped to catch lightning in a bottle a second time with AMC Entertainment  (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report and a handful of other stocks. When those efforts failed, traders then moved to other asset classes like NFTs and cryptocurrencies, ending with today's massive debut of Coinbase Global  (COIN) .

Read: Coinbase Closes 31% Above Reference, 14% Below the Open

Cramer reiterated that while he likes the stock of Coinbase, he's not willing to sell everything else to go all-in. He said the lack of sellers in Coinbase is worrisome, especially with the threat of sustained inflation beckoning. If the prices of oil, lumber, plastics and other commodities don't relent soon, these high-multiple stocks will get pulverized.

Stocks are only pieces of paper, they shouldn't be worshipped, Cramer concluded. You can't just focus on the stocks you love and ignore everything else around you. Investing takes discipline, and that means taking profits and avoiding the urge to be greedy.

Cramer and the AAP team are looking at everything from earnings and cryptocurrency 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.

IPO Update

After today's high-flying debut of Coinbase, Cramer circled back to many of last year's hottest IPOs to see if they're worth buying now that the hype has subsided. After roaring out of the gate, shares of Ncino  (NCNO) - Get nCino Inc Report fell to lows of $57, which was the best time to buy, according to Cramer. He recommended the stock under $65.

Cramer felt the sweet spot for Snowflake  (SNOW) - Get Snowflake, Inc. Class A Report was below $190 a share, and below $43 a share for JFrog  (FROG) - Get JFrog Ltd. Report.

Investors should avoid the stock of American Well Corp.  (AMWL) - Get American Well Corporation Class A Report, even at $17 a share. Cramer was also not a fan of Asana  (ASAN) - Get Asana, Inc. Class A Report nor Unity Software  (U) - Get Unity Software, Inc. Report, preferring Roblox  (RBLX) - Get Roblox Corp. Class A Report instead. He also steered investors away from Palantir  (PLTR) - Get Palantir Technologies Inc. Class A Report and DoorDash  (DASH) - Get DoorDash, Inc. Class A Report amid rising competition.

GoodRx  (GDRX) - Get GoodRx Holdings, Inc. Class A Report remains a buy in the low-$30s. Cramer would pay a maximum of $75 a share for Lemonade  (LMND) - Get Lemonade Inc Report, which represents 50 times sales. He remained a huge fan of Airbnb  (ABNB) - Get Airbnb, Inc. Class A Report for its disruptive technologies.

Worst SPAC deals

When a SPAC company says something that's too good to be true, it probably is, Cramer told viewers, as he counted down the worst SPAC deals in the electric vehicle sector.

Coming in at No. 5 was XL Fleet  (XL) - Get XL Fleet Corp. Class A Report, the electric truck maker that made lofty sales forecasts, only to slash them after being outed by a research firm.

At No. 4 was Canoo  (GOEV) - Get Canoo Inc. Class A Report, the EV maker that promised a modular design, consumer vehicles and a subscription sales model. After the company's CFO resigned, the company canceled all three of those plans.

No. 3 was Lordstown Motors  (RIDE) - Get Lordstown Motors Corp. Class A Report, the Cinderella story of an abandoned General Motors  (GM) - Get General Motors Company Report factory repurposed to make electric vehicles. After declaring thousands of pre-orders, Lordstown later recanted.

Coming in at No. 2 was Romeo Power Technologies RMO, a next-generation battery maker similar to QuantumScape  (QS) - Get QuantumScape Corporation Class A Report, or so we thought. After forecasting $140 million in revenues for 2021, the company later revised estimates lower by 80% to just $18 million to $40 million.

Finally, the worst EV SPAC of all was Nikola Corp.  (NKLA) - Get Nikola Corporation Report, the electric truck maker outed for rolling its prototype downhill to simulate running on its own power.

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Executive Decision: PAR Technology

In his "Executive Decision" segment, Cramer spoke with Savneet Singh, president and CEO of PAR Technology  (PAR) - Get PAR Technology Corporation Report and Ron Shaich, managing partner at Act III Holdings and former CEO of Panera Bread, which today announced a major investment in PAR.

Shaich explained that for large-scale restaurants, the holy grail is one unified software platform that can manage it all, and that's what PAR Technology has created. PAR's solution replaces point-of-sale systems, delivery systems, customer systems and ordering systems, with everything talking seamlessly to the most important part of the restaurant, the kitchen.

Singh added that after years of stagnation, he focused his efforts over the past year on attracting and retaining the best talent and allocating the capital they needed to speed their development. The result has attracted the attention of Shaich and others, who see the potential of an enterprise-class system.

Shares of PAR have risen over 400% over the past 12 months.

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.

Apple: Own it, Don't Trade it

In his "No Huddle Offense" segment, Cramer took issue with Apple  (AAPL) - Get Apple Inc. Report analyst Tony Sacconaghi, who recently cast doubt on the company's prospects.

Cramer said he totally understands Sacconaghi's technical analysis on Apple, comparing its sales to last year and looking for that "next big thing" to drive growth. But what Sacconaghi lacks, Cramer said, is understanding that for millions of people worldwide, they simply cannot live without their Apple devices and services.

Cramer recalled how just the other day he thought he had lost his Apple watch. The mere thought of a lost watch sent him into a panic. "Apple's products mean a lot to me," he said, which is why investors need to own Apple and not try and trade the daily highs and lows.

"Own it, don't trade it," remains his advice of the day.

Lightning Round

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:

Keysight Technologies  (KEYS) - Get Keysight Technologies Inc Report: "I really like this one. It should be higher."

Amarin  (AMRN) - Get Amarin Corp. Plc Report: "This is speculative and should only be bought as a spec."

Paysafe PSFE: "I believe in this company. With shares down 10%, I'm a buyer."

Xilinx  (XLNX) - Get Xilinx, Inc. Report: "I can't wait for the acquisition to close. I like it."

Humanigen  (HGEN) : "You want Regeneron Pharmaceuticals  (REGN) - Get Regeneron Pharmaceuticals, Inc. Report."

TransMedics Group  (TMDX) - Get TransMedics Group, Inc. Report: "This is a very hard problem to solve and I don't think it's going to be a profitable business anytime soon."

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL.