At home is the place to be, Jim Cramer proclaimed to his Mad Money viewers Tuesday, and the stay-at-home economy is getting stronger every day.
Our habits are changing, Cramer said, and some businesses are struggling to keep pace. Case in point: the earnings reports today from Domino's Pizza (DPZ) - Get Domino's Pizza, Inc. Report and Target (TGT) - Get Target Corporation Report .
Domino's posted fantastic earnings with sales up 12%. Cramer said that's because Domino's has everything the stay-at-home crowd wants. You can order online, pay online and not waste any time. Everybody loves that. Then, the food gets delivered right to you.
Target is the opposite of stay-at-home. You have to go to the store, where the prices are nothing special and the products are nothing that you can't find elsewhere. That notion made Cramer question, for the first time, Target's reason for being. Target's online sales were strong, but that only further cannibalizes slumping sales.
The only retailers with strong sales are, surprise, those that help you make your home better. That means companies like Home Depot (HD) - Get Home Depot, Inc. (HD) Report and TJX Stores (TJX) - Get TJX Companies Inc Report , which continues to knock it out of the park with its Home Goods chain.
What else is doing well? Cramer called out other stay-at-home winners like Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report for movies and Activision Blizzard (ATVI) - Get Activision Blizzard, Inc. Report for video games that run on chips made by Nvidia (NVDA) - Get NVIDIA Corporation Report .
Executive Decision: Saleforce
For his "Executive Decision" segment, Cramer again spoke with Marc Benioff, chairman and CEO of Salesforce.com (CRM) - Get salesforce.com, inc. Report , which just posted a three-cents-a-share earnings beat on strong revenues.
Benioff said that after doubling his company's size over the past three years, he looks forward to doubling it again over the next three years.
He noted that Salesforce now has five of the largest banks as customers and is helping them all have better relationships with their customers.
Some of the highlights in the quarter included his company's commerce cloud, which now has over 300 million users, and also its marketing cloud, which now has over 450 million users.
Benioff also touted Salesforce Einstein, their artificial intelligence platform which went live just last week and competes with IBM (IBM) - Get International Business Machines (IBM) Report , Alphabet (GOOGL) - Get Alphabet Inc. Class A Report and Amazon.com (AMZN) - Get Amazon.com, Inc. Report .
Finally, when asked about his guidance for the rest of 2017, Benioff said that they always stay conservative because foreign exchange rates can fluctuate and affect the overall outcome.
Know Your IPO
In his "Know Your IPO" segment, Cramer dove into the coming IPO of Snap, parent of the mobile application SnapChat, which boasts 158 million daily active users that send an astounding 2.5 billion snaps a day.
In a world that's all too serious, Cramer said he understands the appeal of a fun, simple and silly app that allows the coveted younger demographic to get away from it all. That's why Cramer said the bears might be wrong when it comes to Snap's potential.
The real question for Snap is whether their advertising will work as well as Facebook's (FB) - Get Facebook, Inc. Class A Report , or not at all, like Twitter's (TWTR) - Get Twitter, Inc. Report . With 589% revenue growth last year, Cramer's betting that the company will have a least a little time to figure that out.
Based on the current expected share price, Cramer pegged Snap at a $20 billion valuation, or 20.3 times sales. As a comparison, Facebook went public at 19.4 times sales.
Off The Tape
In his "Off The Tape" segment, Cramer sat down with Mike Cagney, co-founder and CEO of the privately-held SoFi, the online lender and financial services company that's booked over $16 billion in loans in just the past six years.
Cagney explained that SoFi (originally known as Social Finance) is reinventing how financial services work, offering customers speed, transparency and alignment with their financial goals. He said that SoFi acts as a true lending partner.
With over $1.1 trillion in student loan debt in our country, Cagney said SoFi customers pay an average of $22,000 less on their students loans and get out of debt faster. During that period, SoFi also helps customers begin investing and educates them on home ownership.
With so much cynicism in the financial world, Cramer said he'd be an investor in SoFi, if only it were public.
In the Lightning Round, Cramer was bullish on Network Appliance (NTAP) - Get NetApp, Inc. (NTAP) Report , Penn National Gaming (PENN) - Get Penn National Gaming, Inc. Report , Schlumberger (SLB) - Get Schlumberger NV Report , Carnival (CCL) - Get Carnival Corporation Report and Randgold Resources (GOLD) - Get Barrick Gold Corporation Report .
Cramer was bearish on Southwestern Energy (SWN) - Get Southwestern Energy Company Report , Occidental Petroleum (OXY) - Get Occidental Petroleum Corporation Report , Transocean (RIG) - Get Transocean Ltd. Report , Norwegian Cruise Line (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report , Coeur d'Alene Mines (CDE) - Get Coeur Mining, Inc. Report , Teekay Offshore Partners (TOO) - Get Teekay Offshore Partners L.P. Report , Ferrellgas Partners (FGP) - Get Ferrellgas Partners, L.P. Report and Olin (OLN) - Get Olin Corporation Report .
In his "No-Huddle Offense" segment, Cramer told investors that a bottom and a rally are not the same thing. Case in point, the turn in the drug stocks after execs met with President Trump on Jan 31.
In the surface, it looks like that meeting was the bottom for the drugmakers, ushering in a new era of good feelings after campaign promising of reeling in prices. But in reality, Cramer said two things led to this bounce in the drug stocks.
First was short covering, as the bears had built up sizable short positions ahead of the meeting. But second, and more importantly, was the fact that the drug stocks simply resumed their positions as bond market alternatives for those looking for yield. Plotting the charts of these stocks against bond yields provides almost a one-for-one correlation, Cramer said, which is why he's not yet sounding the all-clear for this group.
Cramer and the AAP team are picking up more shares of energy company Apache (APA) - Get Apache Corporation Report . Find out what they're telling their investment club members with a free trial subscription to Action Alerts PLUS.
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At the time of publication, Cramer's Action Alerts PLUS had positions in APA, TJX, GOOG and FB.