When a high-profile tech stock gets cut in half, that's going to take a lot of other stocks with it, Jim Cramer told his Mad Money viewers Friday. And with valuations for many stocks remaining high, there could be more punishment to come in the days ahead.
Investors in DocuSign (DOCU) - Get DocuSign, Inc. Report saw their shares get crushed by over 42% Friday, after the company reported far less business than it anticipated. Cramer said the fallout could continue into next week's game plan. Two companies that could possibly be affected are MondoDB MDB and Coupa Software (COUP) - Get Coupa Software, Inc. Report, both of which report on Monday.
On Action Alerts PLUS, Bob Lang and Chris Versace say Marvell Technology (MRVL) - Get Marvell Technology, Inc. Report delivers, and they're boosting their price target again because of record revenue and great performance. Get the details, read more on their trading strategies and see what they have to say about Nvidia (NVDA) - Get NVIDIA Corporation Report.
Cybersecurity company SentinelOne (S) - Get SentinelOne, Inc. Class A Report dipped 7.6% Friday on the DocuSign news, and could get hit again when it reports on Tuesday. That's why Cramer will be focused instead on home builder Toll Brothers (TOL) - Get Toll Brothers, Inc. Report.
On Wednesday, Cramer will be watching UiPath (PATH) - Get UiPath Inc Class A Report, along with Campbell Soup (CPB) - Get Campbell Soup Company Report and retailers RH (RH) - Get RH Report and GameStop (GME) - Get GameStop Corp. Class A Report. Of the group, he said to buy RH on any weakness.
Then on Thursday, the earnings continue with Broadcom (AVGO) - Get Broadcom Inc. Report, Costco (COST) - Get Costco Wholesale Corporation Report, Hormel HRL, Lululemon Athletica (LULU) - Get Lululemon Athletica Inc Report and Chewy (CHWY) - Get Chewy, Inc. Class A Report. Cramer said Broadcom remains incredibly consistent with a great dividend and Costco always presents a buying opportunity when they report.
Executive Decision: Boot Barn
In his first "Executive Decision" segment, Cramer spoke with Jim Conroy, president and CEO of Boot Barn (BOOT) - Get Boot Barn Holdings, Inc. Report, the Western apparel retailer with shares that dipped 1.7% today along with broader markets. Over the past two years, however, Boot Barn shares are up 205%.
Conroy explained that while Boot Barn's first customers were actual cowboys working on farms and ranches, their market has expanded greatly into the casual country and Western consumer. These new consumers still wear jeans and boots, he said, but typically prefer baseball caps over cowboy hats.
This new group of consumers has emboldened the company's growth plans, Conroy added. Boot Barn had initially targeted 500 stores, but with the growth they've seen in new markets, along with that of additional stores in existing markets, they now feel they can exceed those initial plans.
Finally, Conroy spoke about the company's e-commerce efforts. He said online sales continue to grow and nearly 25% of those sales are being shipped to stores for pickup. Boot Barn also offers fulfillment from their stores to speed up shipping, as well as in-store returns of online items.
Am I Diversified?
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included Apple (AAPL) - Get Apple Inc. Report, Amazon (AMZN) - Get Amazon.com, Inc. Report, Alphabet (GOOGL) - Get Alphabet Inc. Class A Report, JP Morgan Chase (JPM) - Get JPMorgan Chase & Co. Report and Tesla (TSLA) - Get Tesla Inc Report. Cramer struggled with Apple, Google and Amazon all in the same portfolio, but said he would allow it.
The second portfolio's top holdings included Best Buy (BBY) - Get Best Buy Co., Inc. Report, Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report, Nvidia (NVDA) - Get NVIDIA Corporation Report, Sonos (SONO) - Get Sonos, Inc. Report and toy maker Hasbro (HAS) - Get Hasbro, Inc. Report. Cramer said this portfolio can't have both AMD and Nvidia. He suggested adding Target (TGT) - Get Target Corporation Report and Raytheon (RTX) - Get Raytheon Technologies Corporation Report to replace Best Buy and either AMD or Nvidia.
The third portfolio had Apple, Pioneer Natural Resources (PXD) - Get Pioneer Natural Resources Company Report, Snowflake (SNOW) - Get Snowflake, Inc. Class A Report, SVB Financial (SIVB) - Get SVB Financial Group Report and Molina Healthcare (MOH) - Get Molina Healthcare, Inc. Report as its top five stocks.Cramer said this portfolio was diversified, but recommended replacing Molina with Centene.
The next portfolio's top stocks were 3M (MMM) - Get 3M Company Report, General Motors (GM) - Get General Motors Company Report, Philip Morris (PM) - Get Philip Morris International Inc. Report, IBM (IBM) - Get International Business Machines Corporation Report and Cleveland Cliffs (CLF) - Get Cleveland-Cliffs Inc Report. Cramer blessed this portfolio as diversified.
The final portfolio included Marvell, IBM, Chevron (CVX) - Get Chevron Corporation Report, Nike (NKE) - Get NIKE, Inc. Class B Report and Microsoft (MSFT) - Get Microsoft Corporation Report. Cramer said Marvell and Microsoft were different enough to have in the same portfolio, which made this portfolio also diversified.
Cramer Does His Homework
In his "Homework" segment, Cramer followed up on a few stocks that stumped him during earlier shows. He said that Vtex (VTEX) - Get VTEX Class A Report, the e-commerce software company that primarily operates in Latin America appears to be another overhyped IPO that got out of hand. Cramer said he'd speculate on Vtex, but only under $11 a share.
Turning to the progressive leasing company, Prog Holdings (PRG) , Cramer reminded viewers that sometimes, stocks get cheap for a reason. This is one of stories, as the leasing business often struggles, no matter what the current economic environment.
Buy the Dip: Costco
In his No-Huddle Offense segment, Cramer opined on Charlie Munger's recent comments on Costco, Cramer's favorite big box retailer.
Munger, partner of Warren Buffett, had only positive things to say about Costco, and Cramer said that praise was well-earned. The company's membership model keeps customers coming back for more, while the company's huge purchasing power keeps competitors at bay.
Earlier this week however, shares of Costco dipped after the company reported only a 14% bump in same-store sales when the analysts were expecting 15%. If you're a short-term thinker, you sold on this news, fearing that Omicron was taking its toll. But if you're a smart investor, like Munger, then you knew to buy the dip because when it comes to big box retail, no one does it better than Costco.
Here's what Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Friday evening:
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