If you find yourself debating whether Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report is still a growth stock or whether AMC Entertainment's (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report valuation is justified, you're missing the point, Jim Cramer told his Mad Money viewers Wednesday. There are plenty of companies that are doing everything right, and rewarding shareholders in the process.
There was much debate today as to whether Netflix's growth still warrants making it the "N" in FAANG. But Cramer said when you find yourself debating growth rates, the debate is usually over. Likewise with those still speculating on the perfect valuation for AMC Entertainment. AMC was only kept alive by selling stock at inflated prices to the Reddit crowd. That makes speculating on AMC a zero-sum game.
FAANG is Cramer's acronym for Facebook (FB) - Get Facebook, Inc. Class A Report, Amazon (AMZN) - Get Amazon.com, Inc. Report, Apple (AAPL) - Get Apple Inc. (AAPL) Report, Netflix, and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report.
Cramer told viewers that rather than getting caught up in these distractions, they'd be far better off focusing on companies doing everything right. Companies like Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill, Inc. Report, which soared 11.5% Wednesday on sales that rose 10.5%.
How is Chipotle still hitting it out of the park? Culture. Cramer said Chipotle's customer-centric innovation has turned it into a digital lifestyle, with pickup, delivery and drive-through options for great food that customers love.
Chipotle is still a growth story, with the ability to double its store count in the U.S. That's why it's still worth owning.
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Executive Decision: Salesforce.com
In his "Executive Decision" segment, Cramer spoke with Marc Benioff, chairman and CEO of Salesforce.com (CRM) - Get salesforce.com, inc. Report, which on Wednesday closed on its acquisition of Slack Technologies.
Benioff said that Slack is transforming the way we work and the pandemic only accelerated that transformation. Salesforce has been integrating Slack into all of its products and the result has been that everything got even better.
There are many naysayers surrounding the Slack deal, but Benioff noted that there were just as many naysayers around their Tableau acquisition and every deal they do. "We are in a post-pandemic reality where there's still a pandemic," he said, and that requires CEOs to re-conceptualize their businesses with bold moves like the Slack acquisition.
When asked about the post-pandemic situation, Benioff explained that for Salesforce, that means some people will come back to the office, but 50% to 60% will not. It also means more offsites and events will be needed to maintain their culture. Salesforce's Dreamforce conference, for example, will take place simultaneously in four cities around the globe.
Know Your IPO
In his "Know Your IPO" segment, Cramer reminded viewers the every market is bound by the laws of supply and demand. Right now, supply is far outstripping demand, with 19 deals coming this week alone. And while Cramer deemed the vast majority of these deals "absolute garbage," there is one that stands out, Doximity (DOCS) - Get DOXIMITY, INC. Report, the health information platform for doctors.
Doximity is a social network for doctors and doctor's offices that makes its money from advertising. The company has been around for 11 years and unlike most IPOs, is profitable.
Shares came public back in June at $41 and rose into the mid-$60s before pulling back into the $40s. Shares closed today just over $55 and are up 12% this week.
At these levels, Doximity trades at 35 times sales, which is pricey, but Cramer said with 34% revenue growth, this is one cloud platform worth watching. He said he'd be a buyer on any market-induced weakness going forward.
Off the Charts
In the "Off The Charts" segment, Cramer checked in with colleague Carolyn Boroden, the "Fibonacci Queen," to make sense of the market's recent decline.
When Cramer last spoke with Boroden, she correctly predicted a sharp decline in the S&P 500 coming between July 13 and July 15. Like clockwork, the market peaked as predicted.
Boroden also noted that the market's recent decline lasted just three days, just as it did in March, twice in May and again in June, signaling that it's likely clear sailing from here.
Boroden's new forecast indicated that if the S&P stays above resistance at 4,359, its next likely target is between 4,437 and 4,492. For investors looking to invest with a single stock, Boroden suggested Amazon, which shows a similar pattern, with support between 3,490 and 3,508 support and a likely target of 3,847.
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Ready for Takeoff
In his "No Huddle Offense" segment, Cramer declared the airlines are ready for takeoff, and by the end of the year will return to profitability.
It's hard to believe that just a year ago, many of the airlines were on the verge of bankruptcy. But our government stepped in, bridged the gap and didn't allow our airlines or cruise lines to fail.
Cramer said it's amazing what our government can do when it works together to solve problems. Jay Powell and Steve Mnuchin deserve a lot of credit for their handling of the pandemic, as does Congress for its passage of multiple rounds of stimulus that saved businesses big and small.
Here's what Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Wednesday evening:
Clover Health Investments (CLOV) - Get CLOVER HEALTH INVESTMENTS CORP Report: "No, no. I don't like their business model. Go with UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated Report."
Nokia undefined: "They're making a comeback. At this price, Nokia is a buy. "
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At the time of publication, Cramer's Action Alerts PLUS had a position in FB, AMZN, AAPL, GOOGL.