Skip to main content

Cramer's Mad Money Recap: J&J, Netflix, Nvidia, Tesla

Cramer says the clouds over Wall Street may have broken. Get ready for next week's earnings parade.
  • Author:
  • Publish date:

It's finally time to get bullish, because the cavalry is finally here. Those were Jim Cramer thoughts for his Mad Money viewers Friday after a two-day rally that seems to have finally broken the gloom on Wall Street. It's time to get constructive, Cramer said, because there's another gauntlet of earnings ahead.

Cramer's game plan for next week's trading begins on Monday, with Albertsons  (ACI) - Get Free Report, the only grocery store worth owning.

Over on Action Alerts PLUS, Bob Lang and Chris Versace are wondering if there's going to be a jolly holiday season this year, what with soaring energy prices, along with higher food and gas prices. They're keeping a close eye on what this means for investors and their positions in Costco  (COST) - Get Free Report, Amazon  (AMZN) - Get Free Report and Mastercard  (MA) - Get Free Report. Find out more and get their latest investing insights on Action Alerts PLUS.

Next, on Tuesday, we'll see earnings from Johnson & Johnson  (JNJ) - Get Free Report and Procter & Gamble  (PG) - Get Free Report, along with Netflix  (NFLX) - Get Free Report, and an analyst day for Ulta Beauty  (ULTA) - Get Free Report. Cramer was bullish all around, but said J&J would be his favorite. Also on Tuesday is United Airlines  (UAL) - Get Free Report, followed by American Airlines  (AAL) - Get Free Report and Southwest Airlines  (LUV) - Get Free Report on Thursday. With travel finally returning, now might be the time for the airlines.

Wednesday's earnings included ASML Holdings  (ASML) - Get Free Report, Lam Research  (LRCX) - Get Free Report, Abbott Laboratories  (ABT) - Get Free Report and Tesla  (TSLA) - Get Free Report in the bull camp. Cramer said it's not the time to own Verizon  (VZ) - Get Free Report or AT&T  (T) - Get Free Report, which reports on Thursday. He was also not bullish on CSX  (CSX) - Get Free Report or Union Pacific  (UNP) - Get Free Report, as the railroads are likely to get worse before they get better.

Thursday, the bulls return with Chipotle Mexican Grill  (CMG) - Get Free Report and Snap  (SNAP) - Get Free Report, but Cramer advised against buying Intel  (INTC) - Get Free Report in favor of rivals Nvidia  (NVDA) - Get Free Report and Advanced Micro Devices  (AMD) - Get Free Report.

The bulls round out the week on Friday with three Cramer favorites, Honeywell  (HON) - Get Free Report, American Express  (AXP) - Get Free Report and oil services giant Schlumberger  (SLB) - Get Free Report.

Counting Bank Earnings

Now that all of the major banks have reported earnings, it's time for Cramer's quarterly roundup of his favorites. Spoiler alert: There wasn't a lot he didn't like.

JPMorgan Chase  (JPM) - Get Free Report delivered solid results, but the stock came into earnings season hot, limiting its upside. Shares are up 31% for the year, but the company is spending more to fight off the challenges from fintech.

Get more trading strategies and investing insights from the contributors on Real Money.

Bank of America  (BAC) - Get Free Report saw stunning 58% earnings growth this quarter, making it "unstoppable" in Cramer's book. As for Morgan Stanley  (MS) - Get Free Report, the company is transforming itself into a consistent wealth management powerhouse that was even able to shrug off a downgrade Friday. Shares are up 49% for the year.

Wells Fargo  (WFC) - Get Free Report is loathed on Wall Street, but Cramer felt the bank may finally be ready to put its past behind them and start playing offense.

Finally, Goldman Sachs GS reported a monster quarter Friday with blowout earnings that once again cemented its position as one of the strongest banks out there.

Executive Decision: Amazon Web Services

In his first "Executive Decision" segment, Cramer sat down with Adam Selipsky, CEO of Amazon's  (AMZN) - Get Free Report Web Services, the cloud services giant that's now a $60 billion company, having grown 37% last quarter.

Selipsky said that AWS is well placed within Amazon, an arrangement that allows them to focus on customers and innovation and not get distracted by the things stand-alone companies have to worry about. AWS began serving customers in 2006 and remains an innovator in the industry with robust capabilities. The company even designs its own semiconductors to boost performance.

When talking about pricing, Selipsky noted that AWS has reduced prices 109 times over its history, often in the absence of competitive pressures to do so. Any time AWS is able to reduce costs, they pass those savings onto customers, he said.   

AWS is very proud to have been instrumental in the development of Moderna's  (MRNA) - Get Free Report COVID vaccine. What had previously taken 20 months to complete was done in 42 days, Selipsky said, which proves that when technology and innovation meet the cloud, anything is possible.

Speaking of the pandemic, Selipsky noted that during March and April of 2020, nearly five years of digital transformation occurred at companies around the globe.

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 Norwegian Cruise Line Holdings  (NCLH) - Get Free Report, Spirit Airlines  (SAVE) - Get Free Report, DraftKings  (DKNG) - Get Free Report, Uber  (UBER) - Get Free Report and Ford  (F) - Get Free Report. Cramer said this portfolio shouldn't have both Norwegian and Spirit. He suggested selling Spirit and replacing it with a healthcare stock like UnitedHealth Group  (UNH) - Get Free Report.

The second portfolio's top holdings included Amazon  (AMZN) - Get Free Report, Salesforce  (CRM) - Get Free Report, Home Depot  (HD) - Get Free Report, Coca-Cola  (KO) - Get Free Report and Walt Disney DIS. Cramer said this portfolio didn't require any changes.

The third portfolio had Amazon, Ford, JPMorgan Chase, Walt Disney and Boeing  (BA) - Get Free Report as its top five stocks. Cramer blessed this portfolio as properly diversified.

The fourth portfolio's top stocks were CSX  (CSX) - Get Free Report, Pfizer  (PFE) - Get Free Report, Robinhood  (HOOD) - Get Free Report, Eaton  (ETN) - Get Free Report and Zimmer Biomet  (ZBH) - Get Free Report. This portfolio was also perfectly diversified.

The Future and Fintech

In his "No Huddle Offense" segment, Cramer said there's a reason he's so bullish on cryptocurrencies and fintechs like Square  (SQ) - Get Free Report. It's because those are the places younger investors are putting their money.

Young people don't trust big banks, Cramer said, but they're flocking to the likes of PayPal  (PYPL) - Get Free Report and Square. They don't believe in using gold either, they'd rather invest in Bitcoin. But with Bitcoin ETFs around the corner, Cramer said it's likely time to take profits. He'd rather invest in Affirm  (AFRM) - Get Free Report, which represents the next big wave of financial tech.

Lightning Round

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

GrowGeneration  (GRWG) - Get Free Report: "No. We rode it up and we're not looking back."

Biohaven Pharmaceuticals  (BHVN) - Get Free Report: "Their migraine pill is enough to carry this company for a long time."

AEO  (AEO) - Get Free Report: "I want you to double down. They have a 3% yield and they tell a great story."

RadNet  (RDNT) - Get Free Report: "This is a high-multiple stock, but it's OK."

To sign up for TheStreet's free Daily Booyah! newsletter with all of the latest articles and videos please click here.