Get ready to be overwhelmed with earnings next week, Jim Cramer warned his Mad Money viewers Friday. The earnings will be coming in hot, he said, which means investors need to focus on just a few stocks and use the conference calls to make informed decisions. There is no room for error during the heart of earnings season.
Tuesday is technology day, when Apple (AAPL) - Get Apple Inc. (AAPL) Report, Alphabet (GOOGL) - Get Alphabet Inc. Class A Report, Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report and Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report will all be reporting. Cramer expects strong results from all of them, but noted that the expectations for Microsoft may cause the stock to dip after it reports.
Next, on Wednesday, we'll hear from Boeing (BA) - Get Boeing Company Report, Facebook (FB) - Get Facebook, Inc. Class A Report, Ford (F) - Get Ford Motor Company Report and McDonald's (MCD) - Get McDonald's Corporation (MCD) Report, among many others. Cramer was bullish on all of these stocks as well, but said Boeing will get worse before it gets better.
Thursday brings earnings from three more Cramer favorites, MasterCard (MA) - Get Mastercard Inc. (MA) Report, Amazon (AMZN) - Get Amazon.com, Inc. Report and Twilio (TWLO) - Get Twilio, Inc. Class A Report.
Finally, on Friday we'll hear from ExxonMobil (XOM) - Get Exxon Mobil Corporation Report and Chevron (CVX) - Get Chevron Corporation Report, two oils which Cramer had previously deemed uninvestable, but have since gotten religion regarding climate change thanks to activist pressures. Cramer also said he'd be a buyer of Caterpillar (CAT) - Get Caterpillar Inc. Report as infrastructure spending continues to work its way through Congress.
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Cramer Does His Homework
In his "Homework" segment, Cramer followed up on a stock that stumped him during an earlier show. He said that Monday.com MNDY, a recent IPO, saw a remarkable run after entering the market last month, but has since fallen out of favor. The recent weakness is your chance to buy, however, as long as you're buying for speculation only.
Monday.com is a software-as-a-service platform that provides tools for developers to build and market their applications. Revenues are growing at 85%, but sales costs have sometimes exceeded those revenues. Cramer was also not a fan of Monday.com's sky-high valuation of 24 times sales.
Another potential red flag, despite having 44 million shares outstanding, the company only sold four million in its IPO. When the lockup period expires in December, Cramer expects more shares will hit the market at lower prices.
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 Alphabet, Microsoft, Cisco Systems (CSCO) - Get Cisco Systems, Inc. Report, Republic Services (RSG) - Get Republic Services, Inc. Report and Danaher (DHR) - Get Danaher Corporation Report. Cramer said this portfolio has too much tech and needed a healthcare company like AbbVie (ABBV) - Get AbbVie, Inc. Report to replace Microsoft.
The second portfolio's top holdings included Boeing, Coca-Cola (KO) - Get Coca-Cola Company Report, Walt Disney (DIS) - Get Walt Disney Company Report, Bank of America (BAC) - Get Bank of America Corp Report and Kraft-Heinz (KHC) - Get Kraft Heinz Company (KHC) Report. Cramer suggested selling Kraft and adding Advanced Micro Devices to properly be diversified.
The third portfolio had InMode (INMD) - Get InMode Ltd. Report, Mercado Libre (MELI) - Get MercadoLibre, Inc. (MELI) Report, Microsoft, GrowGeneration (GRWG) - Get GrowGeneration Corp. Report and International Paper (IP) - Get International Paper Company (IP) Report as its top five stocks. Cramer said he liked this portfolio, which was properly diversified.
The fourth portfolio's top stocks were Microsoft, Apple, Morgan Stanley (MS) - Get Morgan Stanley (MS) Report, Skyworks Solutions (SWKS) - Get Skyworks Solutions, Inc. Report and Chevron. Cramer once again advised selling Microsoft in favor of healthcare, this time with health plan provider Centene (CNC) - Get Centene Corporation Report.
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Executive Decision: Ree Automotive
In his "Executive Decision" segment, Cramer spoke with Daniel Barel, co-founder and CEO of Ree Automotive (REE) , the EV-platform maker that just completed its merger with a SPAC and began trading today.
Barel explained that Ree is not an EV automaker, it manufactures a unique, modular EV platform that can be used inside a whole host of different vehicles. The platform comes in multiple sizes with various battery packs that are perfect for manual or autonomous systems.
When asked what makes Ree's platform better, Barel noted that their low center of gravity provides more space, making them perfect for trucks. Using Ree, truck makers can have 36% more volume per vehicle. The platform's different dimensions means a single platform can be used for big and small vehicles and everything in between.
Barel said Ree is 15 years ahead of the curve when compared to traditional automakers that are focused on bespoke vehicles with individual platforms.
What's on the Menu
In his No-Huddle Offense segment, Cramer said there's a big shift afoot in the quick-serve restaurant space. Three companies have emerged from the pandemic stronger than they went in, and what they all have in common is scale.
The "last man standing" principle is clearly at work when it comes to Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill, Inc. Report, Domino's Pizza (DPZ) - Get Domino's Pizza, Inc. Report and Starbucks (SBUX) - Get Starbucks Corporation Report, all of which had the scale to adapt their businesses when so many smaller players simply failed.
That's how shares of Starbucks are up 63% over the past year and how Domino's has delivered 253% gains over the past five years. These restaurant chains never stop innovating and adapting to their customers' needs and they have the earnings to prove it.
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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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, GOOGL, MSFT, FB, DIS, ABBV.