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Cramer's Mad Money Recap: GE, Apple, Starbucks, AMD

Jim Cramer says a negative viewpoint can wrongly drag down good stocks. A winning strategy is to do your homework and buy the best stocks on weakness.
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Don't take your investing cues from the day-to-day action, Jim Cramer warned his Mad Money viewers Tuesday. Every day, the market looks at stocks through a different prism, Cramer said, which is why you need to do your own homework and pick stocks that work for more than just today's news cycle.

The prism through which the market views the world plays an important role on valuations of stocks, Cramer explained. Monday, that prism was positive. Tuesday, it wasn't. Tomorrow? Who knows?

Get more of Cramer's investing ideas and earnings season analysis on Real Money.

Viewed through the negative viewpoint of the CDC's new mask guidelines and warnings, even the greatest of earnings seemed ho-hum. That's why investors shrugged off great news from 3M  (MMM) , Raytheon Technologies  (RTX)  and General Electric  (GE) . It's also how the results weren't good enough for shareholders of Apple  (AAPL) , Starbucks  (SBUX)  or Advanced Micro Devices  (AMD) .

With a negative prism, great becomes only good, and good is never seen as good enough. But Cramer reminded viewers that how the market sees stocks today doesn't change the underlying fundamentals or have any bearing on how the same result will be viewed tomorrow. That's why doing your own homework, making your own decisions, and buying on weakness like today has always proved to be a winning strategy.

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Executive Decision: Mattel

In his first "Executive Decision" segment, Cramer spoke with Ynon Kreiz, chairman and CEO of toymaker Mattel  (MAT) , which on Tuesday delivered spectacular earnings with sales up 40%.

Kreiz said Mattel exceeded expectations and proved its foundational transformation has put the company firmly into growth mode. He said Mattel is now an intellectual property-driven, high-performing company.

The key to Mattel's success has been unlocking the full value of the company's intellectual property to deliver family entertainment in more than just toys. Mattel can now deliver films, television, music, online games, live events and a whole lot more. Kreiz said they have 13 projects currently in development.

Adding to Mattel's success is its continued focus on cultural relevance and design innovation. Even iconic brands like Barbie are seeing new life with movies on Netflix  (NFLX)  and even a new musical coming in September.

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Executive Decision: UPS

For his second "Executive Decision" segment, Cramer welcomed back Carol Tome, CEO of UPS  (UPS) , to discuss the company's earnings and outlook as well as the stock's 7% decline Tuesday.

Tome said that e-commerce is clearly here to stay and the way consumers shop has changed forever. However, the rate of growth this year is not the same as it was last year, during the heart of the pandemic, just as the company had forecast.

Despite the slowdown, UPS continues to make progress, leaning into the needs of small and medium-sized businesses which value the services only UPS can provide. Small packages continue to be a growth market for UPS, Tome added.

UPS also continues to focus on profitability and shareholder returns. The company remains on track to deliver 12% operating margins by 2023 and, beginning at the end of 2021, UPS will return 50% of their earnings to shareholders.

Cramer said all of these positives were completely lost on investors during Tuesday's ultra-negative session. 

Executive Decision: Logitech International

For his final "Executive Decision" segment, Cramer checked in Bracken Darrell, president and CEO of Logitech International  (LOGI) , the computer peripheral maker that delivered a 26-cents-a-share earnings beat with sales up 66%. Shares responded by falling 10.2% on the news along with the broader markets.

Darrell said that Logitech saw a lot of strength in the quarter and delivered great results. In a perfect world, investors would have probably liked the company to raise guidance, he said, but after raising estimates just two months ago, they weren't ready to raise again.

When asked about video collaboration, Darrell said the category remains very strong, but not as strong as during the pandemic when the company saw backlogs. Video products are still growing at 72%, he noted, and the company remains very excited about the category.

Darrell was also bullish on e-sports, which continue to gain in popularity, especially with the summer Olympic games this year. He said that new product innovations, like Logitech' Ultimate Ears headphones, which mould to your ear in less than 60 seconds, are one of many hidden gems within Logitech.

Sink Your Stock

In his No-Huddle Offense segment, Cramer said there's a new game on Wall Street, and it's called "sink your favorite stocks."

That's what it felt like listening to Tome's cautious comments, Cramer explained. Tome's conservative tone gave investors everything they needed to head for the exits, despite UPS posting fabulous earnings.

Then there's the Chinese government, which has suddenly remembered that it's a communist country. Cramer said China's crackdown on its education companies is a warning shot to all Chinese investors. Communism is bad for capitalism.

Finally, Cramer said Tesla's  (TSLA)  Elon Musk tempered expectations by reminding investors how hard it is to make cars. If Tesla has problems, that doesn't bode well for any of its competitors. Shares of Tesla dipped 2% by the close.

Lightning Round

Here's what Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Tuesday evening:

Gogo  (GOGO) : "They're just so-so. I'm not a fan."

Chargepoint CHPT: "I'd buy it under $20. This whole industry is trading down right now." TBLA: "This is an interesting company, but I'd buy The Trade Desk  (TTD) ."

Digital Turbine  (APPS) : "This sells at such a high multiple. I don't think that's a great stock to be in right now."

Astra Space  (ASTR) : "It's a crowded space, but at $8, you can buy it for speculation."

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