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Cramer's Mad Money Recap: Alibaba, Disney, Airbnb, DoorDash

Jim Cramer anticipates good earnings news next week. Here's your game plan for some important companies.
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The old adage "Sell in May and go away" needs to be retired, Jim Cramer told his Mad Money viewers Friday. That's because stocks are poised to keep climbing after today's employment report came out far weaker than expected. Weak employment is bad news for our economy, but it's great news for stocks, as it means interest rates will stay low for a little while longer.

That's why Cramer's game plan for next week starts off on Monday with earnings from Tyson Foods  (TSN) - Get Tyson Foods Inc. Report, which should provide a read on food and commodity inflation. Meanwhile, Simon Property Group  (SPG) - Get Simon Property Group Inc. Report and Marriott International  (MAR) - Get Marriott International Report will tell us how the reopening is going. Cramer advised steering clear of Roblox  (RBLX) - Get Roblox Corporation Class A Report, as no one yet knows the correct value for this newly-minted direct listing.

Next, on Tuesday, we'll hear from Palantir  (PLTR) - Get Palantir Technologies Inc. Class A Report and TV-maker Vizio  (VZIO) - Get VIZIO Holding Corp. Class A Report. Cramer expects good things from Palantir, but worries the chip shortage could clip Vizio's earnings.

Wednesday brings earnings from three Cramer's favs, Wendy's  (WEN) - Get Wendy's Company (The) Report, dating app Bumble  (BMBL) - Get Bumble Inc. Report and hydroponics retailer GrowGeneration  (GRWG) - Get GrowGeneration Corp. Report.

Then on Thursday, we'll get earnings from some reopening winners like Alibaba  (BABA) - Get Alibaba Group Holding Limited American Depositary Shares each representing eight Report, Walt Disney Co.  (DIS) - Get The Walt Disney Company Report, Airbnb  (ABNB) - Get Airbnb Inc. Report and DoorDash  (DASH) - Get DoorDash Inc. Class A Report. Coinbase  (COIN) - Get Coinbase Global Inc Report also reports, but Cramer said the true value of this stock remains a mystery.

Finally, on Friday, we'll get the latest retail sales number, which may be weak like employment was this Friday, but it's not likely.

Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Executive Decision: Planet Fitness

In his first "Executive Decision" segment, Cramer spoke with Chris Rondo, CEO of Planet Fitness  (PLNT) - Get Planet Fitness Inc. Report, the health club operator with shares up 26% for the year as the economy reopens.

Rondo said he's happy with the company's progress coming out of the pandemic. His company has added 800,000 net new members so far this year and he noted that the seasonality they typically see has shifted as more and more people get vaccinated.

Industry estimates are that between 17% and 25% of all fitness centers across the country permanently closed during the pandemic and Planet Fitness is one of the largest beneficiaries. Planet Fitness is not mandating vaccines for their employees but they do continue to require employees wear masks.

Finally, Rondo was bullish on their foray into the digital world with their first app. He said up until now, they've only been able to offer services within their four walls. Now, they can deliver content about fitness, nutrition, diet and meditation to members no matter where they are.

Executive Decision: Elanco Animal Health

For his second "Executive Decision" segment, Cramer also spoke with Jeff Simmons, president and CEO of Elanco Animal Health  (ELAN) - Get Elanco Animal Health Incorporated Report, which saw its shares surge 5.8% Friday on strong earnings.

Simmons said Elanco is the second largest animal health company and offers a broad portfolio of products including those it just acquired from the Bayer Animal Health portfolio.

The pandemic led to a surge of pet adoptions, Simmons said, and that means greater demand for medication to treat fleas, ticks, heartworm and even pain caused by arthritis. And while nearly a third of pet owners still don't regularly see their vet, they are shopping online at sites like Amazon  (AMZN) - Get Inc. Report and Chewy  (CHWY) - Get Chewy Inc. Class A Report. That is why Elanco is so excited for their Bayer acquisition, as many of those products are sold over the counter.

It's Elanco's goal to meet consumers where they want to shop, and now they're able to do that.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

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TheStreet Recommends

Know Your IPO

In his "Know Your IPO" segment, Cramer opined on this week's debut of The Honest Co.  (HNST) - Get The Honest Company Inc. Report, which came public on Wednesday at $16 a share and rose to highs near $23 before giving back some of its gains. Cramer said he's a big fan of the company, but the stock leaves a lot to be desired.

Cramer said there are two things keeping him from recommending The Honest Co. -- timing and valuation.

Timing has to do with where we are in the economic cycle. Consumer packaged goods are not the stocks you buy when the economy is booming, they're what you buy during slowdowns and recessions.

The second thing bothering Cramer was valuation. While the Honest Co. has 27% growth, it's only expected to turn a profit this year. That means shares trade at seven times sales, which is way more than its peers, such as Clorox  (CLX) - Get Clorox Company (The) Report which trades at just three times sales. There's simply nothing special about the company to warrant such a rich valuation.

Don't Be Fooled By Earnings Season

In his "No Huddle Offense" segment, Cramer reminded viewers that when it comes to earnings season, the market's initial reactions are often wrong. Case in point, the stocks of DraftKings  (DKNG) - Get DraftKings Inc. Report and Penn National Gaming  (PENN) - Get Penn National Gaming Inc. Report. Both stocks sold off after they reported, as investors assumed that business wouldn't be as rosy as the economy reopened. But now, a week later, shares have rebounded as investors realize those assumptions were wrong.

The same assumptions plagued other stocks like health Plan provider Centene  (CNC) - Get Centene Corporation Report and steelmaker Nucor  (NUE) - Get Nucor Corporation Report, both of which fell as they reported, only to see strong gains thereafter.

That's why Cramer reminded viewers that selling in the heart of earnings season is never a prudent strategy. There is almost always a better time to sell if you wait.

Lightning Round

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

American Airlines  (AAL) - Get American Airlines Group Inc. Report: "American is good, Southwest Airlines  (LUV) - Get Southwest Airlines Company Report is even better. Go with best-of-breed."

Esports Entertainment  (GMBL) - Get Esports Entertainment Group Inc. Report: "I think this is a really good company."

Fidelity National Services  (FIS) - Get Fidelity National Information Services Inc. Report: "This is a terrific payment services company. I'd buy more. Square  (SQ) - Get Block Inc. Class A Report had one of the best conference calls this quarter."

Calix Networks  (CALX) - Get Calix Inc Report: "I like Calix, but I'd rather own Comcast  (CMCSA) - Get Comcast Corporation Class A Common Stock Report."

Rigel Pharmaceuticals Inc  (RIGL) - Get Rigel Pharmaceuticals Inc. Report: "This one is tough. There's a lot of competition. I can't call it a favorite."

Enterprise Products Partners  (EPD) - Get Enterprise Products Partners L.P. Report: "This company is more than just oil and gas. It's well run and it's a buy."

Luminar Technologies  (LAZR) - Get Luminar Technologies Inc. Report: "Autonomous vehicles are fun to look at, but not to invest in."

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