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Cramer's Mad Money Recap 9/29: Warby Parker, Dutch Brothers

Jim Cramer says if you think stock prices seem unhinged from their underlying values, you're right.
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This stock market is full of absurdity, Jim Cramer admitted to his Mad Money viewers Wednesday. If you think stock prices seem to be unhinged from their underlying values, you're right, but that's all part of the current lunacy.

Want to know when the tech stocks will stop going down? Cramer said you need to keep your eye on the price of natural gas.

There's no direct link between the price of natural gas and tech stocks, of course, but Cramer explained that in today's market, the two are correlated. Higher commodity prices translate into rising interest rates, and higher interest rates means that the future earnings of tech stocks are worth less. So when natural gas prices stop going up, tech stocks will stop going down.

And speaking of natural gas prices, the U.S. still has more natural gas than we know what to do with, Cramer noted, but much of that gas remains landlocked in Ohio and Pennsylvania. We simply don't have the will to build the pipelines needed to move it.

If natural gas prices aren't your thing, Cramer said there's plenty of absurdity elsewhere, like with Wednesday's Warby Parker  (WRBY) - Get Warby Parker Report direct listing, which rose 36% by the close. As Cramer told viewers on last night's show, Warby Parker has a lot of risk and wasn't worth its IPO price. He said those that bought shares up an additional 36% are "a bunch of suckers."

Then there's Dutch Brothers BROS, the coffee chain with just 200 locations that seems to be valued on the taste of its coffee, rather than the fundamentals of its business.

This is how the market is functioning at the moment, Cramer concluded, even if it doesn't make any sense to anyone.

Executive Decision: Micron Technology

In his first "Executive Decision" segment, Cramer spoke with Sanjay Mehrotra, CEO of chipmaker Micron  (MU) - Get Micron Technology, Inc. (MU) Report, which today delivered a nine-cents-a-share earnings beat with strong guidance for the future.

Mehrotra said Micron continues to gain momentum thanks to its strong product portfolio and its close partnerships with their customers. While manufacturers are struggling to procure matched sets of components for their products, the underlying demand for memory chips continues to be driven by long-term secular trends, including artificial intelligence, 5G wireless, industrial IoT, automotive and automation.

Mehrotra added that Micron is also shifting its portfolio to higher-margin products, including those developed in partnership with companies like Nvidia  (NVDA) - Get NVIDIA Corporation Report, Intel  (INTC) - Get Intel Corporation (INTC) Report and Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report.

Executive Decision: 23andMe

For his second "Executive Decision" segment, Cramer also spoke with Anne Wojcicki, co-founder and CEO of 23andMe  (ME) - Get 23andMe Report, the genotyping company with 11 million customers.

Wojcicki said that 23andMe's mission really hasn't changed since the company was founded. They provide their customers with a wealth of ancestry and health information they can use to discover who they are and make better health decisions. In addition, if they choose, customers can also participate in research, which a staggering 80% of customers have opted to do.

23andMe is in a unique position, thanks to their direct access with customers, to analyze data and make insights that no one else can, Wojcicki said. The company has already made a number of discoveries that it has shared with their partner GlaxoSmithKline  (GSK) - Get GlaxoSmithKline plc Sponsored ADR Report

When asked about privacy, Wojcicki explained that 23andMe provides customers with both choice and transparency. Customers can decide to opt in or opt out of research as they choose.

Cramer called 23andMe a "great story" that investors should learn more about.

Executive Decision: Affirm

For his final "Executive Decision" segment, Cramer checked in Max Levchin, co-founder and CEO of Affirm Holdings  (AFRM) - Get Affirm Holdings Report, the online payments company with shares up 75% just over the past three months. Shares were down Wednesday by 1.5% as the company wrapped up its analyst day.

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Levchin explained that Affirm is the intellectual leader in the buy-now-pay-later space and the technology really is the cornerstone of everything the company does. Affirm is focused on consumer "delight" Levchin said, and that means disrupting traditional credit cards and layaway programs with options that are better for both consumers and merchants. 

Affirm is unpacking the credit card, Levchin said, because it doesn't make sense to lump all of your purchases into a single, high-interest credit card. Consumers want better choices, he said and that's what Affirm gives them.

When asked how higher interest rates would affect his company, Levchin said that as rates go up, things actually get better for Affirm because its 0% interest offers will only get more appealing to consumers.

Boring Is Beautiful

In his No-Huddle Offense segment, Cramer told viewers that when it comes to investing, boring is beautiful. Case in point, Morgan Stanley  (MS) - Get Morgan Stanley (MS) Report, the investment banker that saw its shares dip 2.4% Wednesday after receiving an analyst downgrade. But while the analysts may feel that Morgan Stanley is just a boring investment bank, Cramer said that's exactly what he wants from an investment bank.

For far too long, banking has been a roller coaster of an investment. We've seen huge gains and catastrophic losses, along with stress tests, fines and penalties from regulators. But then there's Morgan Stanley.

Cramer said Morgan Stanley has exited the roller coaster game and returned to its roots as a solid, consistent banking institution you can count on. According to Cramer, a bank you can count on is worth a heck of a lot more than all of those you can't.

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:

HubSpot  (HUBS) - Get HubSpot, Inc. Report: "This is a red-hot stock. I'd rather see you in Salesforce  (CRM) - Get salesforce.com, inc. Report."

ThoughtWorks TWKS: "This one reminds me of Autodesk  (ADSK) - Get Autodesk, Inc. Report and I think Autodesk is the better option."

Old Republic International  (ORI) - Get Old Republic International Corporation Report: "Start buying. They're in a good business with a 4% yield."

Vishay Intertechnology  (VSH) - Get Vishay Intertechnology, Inc. Report: "That's a good company. I like it."

QuantumScape  (QS) - Get QUANTUMSCAPE Report: "There is a lot of competition in the battery space. Let's be careful."

Genworth Financial  (GNW) - Get Genworth Financial, Inc. Class A Report: "I think this one is going to be not-great. I'd sell."

dMY Technology DMYI: "This is a mystery SPAC company that's too crazy to comment on."

WebMD Corp  (HLTH) : "I'm worried about this one. This is a meme stock and that worries me."

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At the time of publication, Action Alerts PLUS had a position in NVDA, MS.