Cramer's Mad Money Recap: AMC Entertainment, GameStop

Jim Cramer says stay away from AMC and GameStop -- the WallStreetBets crew is too powerful.
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Anyone shorting the stocks of AMC Entertainment  (AMC) - Get Report or GameStop  (GME) - Get Report is out of their mind, Jim Cramer told his Mad Money viewers Wednesday. The WallStreetBets crew is too powerful, Cramer explained, and anyone who dares to bet against these stocks is getting slaughtered.

On the surface, it's easy to see why you would want to short these stocks. Consumers just spent millions upgrading their home theaters over the past year and studio after studio is now releasing movies right to our homes. It's no wonder many consumers are foregoing that $12 popcorn to stay at home. With a debt-laden balance sheet and declining fundamentals, why wouldn't you short it?

But none of this matters to the WallStreetBets crew, the group of stock vigilantes that doesn't know their own strength. Time after time, these die-hard buyers snap up shares at all costs, crushing every short-seller who dares to try. On Wednesday, AMC shares made another astonishing 19.2% move to the upside.

As Cramer acknowledged just how powerful WallStreetBets has become, he offered up some other stocks the group might want to look into. He said BeyondMeat  (BYND) - Get Report has 22% of its shares sold short at the moment, yet has incredible growth potential.

Ford  (F) - Get Report is another attractive candidate as that company doubles down on EVs after the successful launch of their electric F-150 pickup. Finally, Cramer suggested Roblox  (RBLX) - Get Report, another heavily shorted stock, would be a good one for WallStreetBets to look into as well.

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Executive Decision: Workday

In his first "Executive Decision" segment, Cramer spoke with Aneel Bhusri, co-founder and co-CEO of Workday  (WDAY) - Get Report, the HR software provider that just posted accelerating revenue growth up 17% to $1.03 billion.

Bhusri explained that during the pandemic, companies were focused on their workforce and making sure they were OK, and had all of the tools they needed to be successful. But now, the CFO office is back in full force and companies are again focused on their financials, reporting and acquisitions. As a result, that side of Workday's business has been remarkably strong.

People are starting to travel again as COVID restrictions are being lifted, Bhusri added, and that's helping them meet with even more customers and prospects.

Bhusri also commented on their own hiring practices at Workday. He said too often in corporate America, we hire the perfect resume and ignore the perfect talent. That's why Workday has shifted its recruiting to look harder at minorities, veterans and caretakers that are re-entering the workforce. "We're going to where the talent is," he said, and it's making a difference.

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Executive Decision: Okta

For his second "Executive Decision" segment, Cramer also spoke with Todd McKinnon, chairman and CEO of Okta  (OKTA) - Get Report, the cybersecurity company that just posted 37% revenue growth. Shares of Okta closed down 3%.

McKinnon said that whether you're talking about employees, your website or mobile apps, you need a strong identity management system at the heart of your security plan and that's what Okta provides. Identity is proving to be a challenge for many companies, he said, which is why we're seeing so many attackers exploit legacy systems.

The good news is that companies are rapidly moving to the cloud and deploying modern systems that are built on a zero-trust principle. Okta has great partnerships with companies like Zscaler  (ZS) - Get Report, to help bring their technology to more companies even faster.

When asked about their CFO's departure, McKinnon noted that while it was not planned, they've already transitioned into an interim position while they search for his replacement.

Executive Decision: Snowflake

For his final "Executive Decision" segment, Cramer checked in Frank Slootman, chairman and CEO of Snowflake  (SNOW) - Get Report, the cloud data platform that just posted strong earnings that included 110% revenue growth.

Slootman said there are several trends moving in favor of Snowflake. First is the transition from on-premise to cloud computing, and the second is the rise of the data scientist. It's finally possible to enrich data, put it into context and allow people and machines to make decisions. That's led to a data renaissance with whole new generations of applications being built.

When asked about their growing sales in Europe and Asia, Slootman said they made a lot of big changes in those regions and those changes are now beginning to pay off.

Slootman added that growth at scale is a rare thing but Snowflake isn't growing at any cost. They are disciplined and efficient, he said. They work for both their clients and their shareholders and every day they wake up and go to work to the best of their abilities.

Don't Take These Stocks for Granted

In his "No Huddle Offense" segment, Cramer urged viewers to never take a great company for granted. When it comes to the FAANG stocks (Cramer's acronym for Facebook  (FB) - Get Report, Amazon  (AMZN) - Get Report, Apple  (AAPL) - Get Report, Netflix  (NFLX) - Get Report, and Alphabet  (GOOGL) - Get Report) and Microsoft  (MSFT) - Get Report, many investors regard them as tired, exhausted companies with little innovation left. Yet all of these stocks are slowly taking over the world.

It's true that from time to time, these companies run into regulators in Washington. Sometimes they also make questionable decisions like today's announcement that Amazon is acquiring MGM Studios for $8.4 billion.

But today's other announcement, the one where Google is partnering with HCA Healthcare  (HCA) - Get Report to help with digital medical records, should be applauded. Unlike IBM's  (IBM) - Get Report attempt to "revolutionize" healthcare with Watson years ago, Cramer said Google is taking a slow, measured approach, with no Earth-shattering announcements.

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At the time of publication, Cramer's Action Alerts PLUS had a position FB, AAPL, AMZN, NFLX, GOOGL, MSFT.