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Cramer's Mad Money Recap 11/17: Affirm, Walmart, Rivian

Companies with a clear mission are companies worth a closer look, says Jim Cramer.
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A business on a mission is a business with a higher stock price, Jim Cramer told his Mad Money viewers Wednesday, as he continued his week-long tour of San Francisco. Making money might be all that matters on Wall Street, Cramer said, but out in Silicon Valley, they answer to a higher calling.

There are many examples of how companies on a mission are winning. Earlier this week, Cramer spoke to Affirm  (AFRM) - Get Affirm Holdings Report holdings, which is taking on high-interest credit cards with a model that's better for everyone. Then there's Walmart  (WMT) - Get Walmart Inc. Report, which told us Tuesday that it's doing right by customers by keeping prices low, even if it cuts into the company's margins. That news didn't sit well with shareholders, but Walmart has no plans to stray from its mission.

There are plenty of examples like these in Silicon Valley, including Square  (SQ) - Get Square, Inc. Class A Report, which is on a mission to empower small businesses with better payment options, Airbnb  (ABNB) - Get Airbnb Report, which helps homeowners make a little extra by renting out spare rooms, and DoorDash  (DASH) - Get DoorDash Report, which supports individuals and local restaurants.

You don't have to be Rivian  (RIVN) - Get RIVIAN AUTOMOTIVE, INC. Report, on a mission of cleaner skies, to make a difference, Cramer concluded. These are the companies that attract the attention, attract the best talent and are doing well by doing good.

Executive Decision: Skyworks Solutions

In his first "Executive Decision" segment, Cramer sat down with Liam Griffin, chairman, president and CEO of chipmaker Skyworks Solutions  (SWKS) - Get Skyworks Solutions, Inc. Report, to learn more about their business and the ongoing semiconductor shortage. Shares of Skyworks have risen 14% over the past year, but still trade at just 14 times earnings.

Griffin said that while Skyworks remains all-in on 5G wireless, they've also built a diversified portfolio of other great businesses including automotive, wireless infrastructure, energy management, GPS and lots more. Revenue in those businesses has grown from $3.3 billion to $5.1 billion in a very short time.

When asked about the semiconductor shortages, Griffin said they're starting to see some of the headwinds abating, but it still only takes one missing component to hold up an entire assembly line. Skyworks has been largely immune to the disruptions however, as they manufacture the bulk of their products in Boston, Los Angeles and Mexico.

"We need to do more to bring chip manufacturing back to the U.S.," Griffin said when asked about the CHIPS act working through Congress. Skyworks proves that you don't need to manufacture goods in China to be profitable. They have both top line growth and great gross margins right here in the U.S.

Executive Decision: Okta

For his second "Executive Decision" segment, Cramer also sat down with Todd McKinnon, chairman and CEO of Okta  (OKTA) - Get Okta, Inc. Class A Report, the identity management software provider that's helping to keep our offices and home offices secure.

McKinnon said that identity is at the heart of cybersecurity, and connecting the right people with the right apps is the only way to prevent hackers, malware and ransomware attacks from occurring.

The reason we have so many passwords and so many issues with passwords is because websites and applications are not connected, McKinnon explained. That's why Okta provides an integrated platform that connects employees to everything they need.

The Okta vision is sometimes hard to visualize, McKinnon admitted, which is why they're building a new experience in New York City where executives can come and see, touch and feel what it means to solve their identity challenges. Doing so will increase productivity and security, he added.

Okta currently has over 13,000 customers, but there are many, many more organizations who need their services. McKinnon estimated their total addressable market at $80 billion.

Executive Decision: Cisco Systems

In his third "Executive Decision" segment, Cramer checked in with Chuck Robbins, CEO of Cisco Systems  (CSCO) - Get Cisco Systems, Inc. Report, the network equipment maker that posted mixed earnings that sent shares down 6% by the close. For the year, shares of Cisco are up 27%.

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Robbins explained that orders grew by 33% in the quarter and that's the metric that investors should be focused on. There were some supply chain challenges and component shortages which ultimately crimped the company's earnings, he admitted, but customers and speaking with their wallets and those orders will eventually get filled.

Adding to Cisco's growth is their transition into software. The company now has $21.6 billion in annual recurring revenue, Robbins said, and it's that revenue that allows them to give the guidance into the future that they do. He remained committed to their prior full-year earnings estimates.

Robbins added that there are still many secular growth trends going in their favor, including the transition to 5G wireless, Wifi6 and 400G ethernet. Additionally, enterprises continue to modernize their infrastructure to support the new hybrid work environments.

EVs: Momentum Can Be Brutal

In his No-Huddle Offense segment, Cramer considered  what's next for the electric vehicle stocks, which have been on fire the past few weeks. Does the rally have staying power, or are we looking at the dot-com bust of 1999 all over again?

Cramer said the EV stocks are booming for one reason and one reason only. Investors are hoping to catch the next Tesla  (TSLA) - Get Tesla Inc Report, which now has a trillion-dollar valuation. But when you invest in stocks like Rivian and Lucid, you're betting on momentum, not sales. And momentum can be brutal.

Of the hundreds of dot-coms that came public in the years leading up to 1999, only one, Amazon  (AMZN) - Get Amazon.com, Inc. Report, became the juggernaut we know today. The lesson from the dot-com era was that investors were right about the trajectory of the Internet, but they were dead wrong on when we'd get there.

That may well be the case with EVs. We're still years away from Rivian and Lucid seeing profitability, and we have no idea what will happen with the scores of battery and charging station players.

If you have big gains in any of these stocks, Cramer said it's OK to sell and lock in those gains. You can buy back your shares years from now and probably not miss a thing.

Lightning Round

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

CSX Corp.  (CSX) - Get CSX Corporation Report: "CSX is good but Union Pacific  (UNP) - Get Union Pacific Corporation Report is a better company to own at this point in the cycle."

Canopy Growth  (CGC) - Get Canopy Growth Corporation Report: "This is a stock that likes to go down. The core business is not that good. Do not buy any more."

Amyris  (AMRS) - Get Amyris, Inc. Report: "I think you own it, but I wouldn't buy more."

Rio Tinto  (RIO) - Get Rio Tinto plc Sponsored ADR Report: "I would say don't own it. It's just not worth it."

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