Selling stocks out of fear is the cardinal sin of investing, Jim Cramer told his Mad Money viewers Tuesday. Panic is not a strategy, and it almost always pays to wait for cooler heads to prevail. There are no do-overs in investing, that's why you need to get it right the first time.
If you sold your stocks in the heart of last week's selloff, you're probably kicking yourself now. The panic last week was palpable, which makes this week's rally all the more predictable.
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When Omicron surfaced just before Thanksgiving, we had almost no news to go on. The new variant didn't even have a name back then. But investors instantly feared the worst. No one even considered what might happen if Omicron wasn't as bad as the Delta variant.
Then there's Apple. Last week a "report from the supply chain" told of the iPhone maker slashing component orders due to waning demand. Shares instantly declined 4% on the news, despite the fact that we see these rumors every year and Apple's suppliers never talk about their relationship with Apple. If they did, they wouldn't be suppliers of Apple.
In both of these cases, panic won the day, but just a few days later, panic was proven dead wrong. That's why you should never act out of fear, Cramer concluded. It's far better to do nothing and wait to see if the rumors are true before making any rash decisions.
Executive Decision: Starbucks
In his first "Executive Decision" segment, Cramer spoke with Kevin Johnson, president and CEO of Starbucks (SBUX) - Get Starbucks Corporation Report, to learn more about the unionization efforts at some of its Buffalo, NY locations.
Johnson explained that Starbucks has always put people over process and they respect the union process that's now occurring in Buffalo. He explained that workers at three locations have petitioned to organize. Starbucks had argued that since 45% of their workers often trade shifts amongst all 20 Buffalo locations, workers at all 20 of those locations should be a part of the union vote. That argument was shot down, however, which allows for a vote at three stores.
On Tuesday, Starbucks' bid to stop a union vote count scheduled for Wednesday in Buffalo was rejected by the National Labor Relations Board, allowing eligible employees in the area to go ahead with the vote.
Johnson told Cramer that most Starbucks employees are happy with their compensation and respect the company's culture and heritage. During the pandemic, Starbucks paid workers, even if their locations were closed. The company has also made strides in pay, working conditions, continuing education, training and more, all in an effort to attract and retain the best people, Johnson said.
Cramer said "things have changed" here in America, but he, too, respects the union process. The concerns of every worker should be addressed.
Executive Decisions: Ford, Salesforce
In a two-for-one "Executive Decision" segment, Cramer spoke with Jim Farley, CEO of Ford (F) - Get Ford Motor Company Report, and Marc Benioff, co-CEO of Salesforce.com (CRM) - Get salesforce.com, inc. Report, to learn more about their new partnership to offer productivity software tools to small businesses. Shares of Ford and Salesforce ended the day up 3.8% and 3.1% respectively.
Farley explained that Ford's vision is to be the no. 1 maker of electrified commercial vehicles, and Tuesday's announcement will bring a new suite of small business productivity tools right into customers' vehicles.
If you look today inside many small business trucks and vans and you'll find an assortment of sticky notes, with invoices tucked behind the sun visor. Ford hopes to change all of that with new software solutions for all of their commercial vehicles.
Benioff added that having these tools will allow customers to connect with Ford in a whole new way, and will allow Ford to help their customers in new ways.
Farley said Ford's new eTransit vans and F-150 Lightning pickup trucks are beginning to roll off the assembly lines and will be among the first vehicles to offer these added services.
Executive Decision: SentinelOne
For his final "Executive Decision" segment, Cramer checked in Tomer Weingarten, co-founder and CEO of SentinelOne (S) - Get SentinelOne, Inc. Class A Report, the cybersecurity company with shares that soared 13.4% Tuesday after the company reported its quarterly results. Last week, however, shares cratered along with the broader markets, making for a wild ride.
Weingarten said that SentinelOne's growth is a testament to businesses finally realizing that cybersecurity is critical to their staying in business. Companies simply cannot afford to be hacked, have their data stolen, or fall victim to ransomware attacks.
SentinelOne offers a full suite of security services, Weingarten explained, from classic, to cloud, to Internet of things and more. They aim to secure every vector an attacker could use to hack your company.
When asked about competition, Weingarten said that cybersecurity has always been a competitive space, but it's also a huge market with plenty of room for all players. SentinelOne has seen its win rates remain stable thanks to its technology, which has set it apart from everyone else in the field.
America's Labor Market
In his "No Huddle Offense" segment, Cramer offered up his thoughts on the state of the labor market in America. He said for decades, employers have had the upper hand over organized labor, but suddenly, it appears the tides have turned.
Between a tougher stance on immigration, the rise of the gig economy and, yes, the pandemic, there are simply fewer workers in America, which gives the remaining workers more power to organize, negotiate and demand higher wages. We've seen the influence of labor across the country, from rising minimum wages to Tuesday's interview with Starbuck's Kevin Johnsons.
Companies will eventually be able to stem the tide with technology. Between artificial intelligence, self-driving cars and industrial automation, there will be a time when companies can do a lot more, with a lot less. Until then, however, Cramer said we're long overdue for workers to get more than they've been getting from most companies.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Tuesday evening:
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