Whatever you do, don't be a hero, Jim Cramer warned his Mad Money viewers Thursday. It's too soon to start putting money to work in the market, Cramer said, and Thursday's selling is likely to spill over into Friday.
After a big January rally, Cramer said stocks were due for a selloff. It's perfectly reasonable to expect a decline like the one we saw. Investors have been bullish on hopes of lower interest rates and a trade deal, he said, but now they have bearish concerns to deal with.
The first concern was the lingering trade war. Thursday we learned there isn't likely to be much progress before more tariffs hit March 1. And Cramer felt President Trump is still playing the long game when it comes to China stealing our technology and using it against us.
The next concern was earnings. While earnings have been great, for the most part, Twitter (TWTR) - Get Twitter, Inc. Report fell 9.8%, taking the rest of the social media stocks with them. Tapestry (TPR) - Get Tapestry, Inc. Report put a damper on retail, and Kellogg (K) - Get Kellogg Company Report and GrubHub (GRUB) - Get Grubhub, Inc. Report also fell substantially.
The third concern for investors was Europe. Weakness in the European economy sends crude tumbling, which in turn takes U.S. stocks with it.
Finally, there's too much bullish sentiment, Cramer said. When everyone is bullish, there's no one left to buy. That's why he urged investors not to put money back to work until we see still lower levels.
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Executive Decision: IAC Interactive
For his "Executive Decision" segment, Cramer sat down with Joey Levin, CEO of IAC Interactive (IAC) - Get IAC/InteractiveCorp. Report , the online services conglomerate that owns 81% of Match Group (MTCH) - Get Match Group, Inc. Report and 84% of Angie Homeservices (ANGI) - Get Angi Inc Class A Report . Cramer said the value of these two investments alone is $19.7 billion, but IAC has a market cap of less than $18 billion.
Levin agreed with Cramer's assessment of their valuation, adding that IAC has plenty of other online properties in their portfolio, plus $1.7 billion in cash. He said the goal for all of their properties is to one day be publicly traded like Match and Angie, but there's no specific timeline to do so.
Shares of IAC are up 17% so far in 2019, but Levin said he still sees a lot of growth ahead as all of their properties are in huge markets, but still have single-digit penetration. In fact, much of IAC is growing faster than the the big growth stocks like Facebook (FB) - Get Meta Platforms Inc. Class A Report and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report , he added.
When asked for specifics about some of their properties, like Investopedia, Levin said there is still a great need for financial literacy in America and that site continues to expand. As for Match, Levin said that it's hard to meet people in general these days, which is why Match has grown beyond just a dating service.
Cramer commended Levin for doing a great job. Shares of IAC have more than doubled since Cramer first got behind the stock in 2017.
Chipotle's Back, and Right on Schedule
Customers and investors alike are flocking back to Chipotle Mexican Grill (CMG) - Get Chipotle Mexican Grill, Inc. Report , Cramer told viewers, and after this quarter's 6.1% pop in same-store sales, you should be too.
Cramer said it's been a long road back for Chipotle, which suffered a series of illness-related scares in 2017. But as is typical for such scares, it takes a full 18 months before sales begin to recover. During that time, Chipotle hired Brian Niccols as its CEO. Niccols, formerly of Taco Bell, has been turning the ship around, cutting costs, increasing efficiency and most importantly, winning back loyal customers. Shares have risen from their lows of $250 to over $585 as a result.
Cramer said today's 11.3% rally in Chipotle will not be its last, as the restaurant chain still has a lot more room to grow.
Over on Real Money, Cramer's says people seem to love Chipotle (CMG) - Get Chipotle Mexican Grill, Inc. Report more than ever. Get more of his insights with a free trial subscription to Real Money.
Executive Decision: Evolus
In his second "Executive Decision" segment, Cramer sat down with David Moatazedi, president and CEO of Evolus (EOLS) - Get Evolus, Inc. Report , a company going head-to-head with Allergan (AGN) - Get Allergan plc Report with a new drug to compete with Botox. Shares of Evolus have soared from $16 to $29 a share after the company received FDA approval on Friday.
Moatazedi said it's an exciting time to be in the aesthetics space. Their drug, Jeuveau, just received approval and is the first new treatment in the category in many years. He said Jeuveau was tested against Botox and the company will be releasing the results of their most recent studies soon.
When asked how they can compete against Botox, which is a household name, Moatazedi explained they built their brand specifically around millennials. Jeuveau does not have any medical uses, only aesthetics, which affords them more freedom in how they market themselves and how they grow.
Turning to the topic of the company's largest shareholder, who still owns 56% of the company, Moatazedi said he expects that shareholder will continue to wind down their position as Evolus moves from research to commercialization, but as of now, there are no plans for a secondary offering of stock.
Cramer said Evolus is an interesting story, but investors need to be careful after the stock's big run.
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 Public Service Group (PEG) - Get Public Service Enterprise Group Inc Report , 3M (MMM) - Get 3M Company Report , CVS Health (CVS) - Get CVS Health Corporation Report , Cisco Systems (CSCO) - Get Cisco Systems, Inc. Report and Pfizer (PFE) - Get Pfizer Inc. Report .
Cramer said this portfolio was properly diversified.
The second portfolio's top holdings included Amazon (AMZN) - Get Amazon.com, Inc. Report , Boeing (BA) - Get Boeing Company Report , UnitedHealth Group (UNH) - Get UnitedHealth Group Incorporated Report , Intuitive Surgical (ISRG) - Get Intuitive Surgical, Inc. Report and Salesforce.com (CRM) - Get salesforce.com, inc. Report .
Cramer said he'd bless this portfolio as well, even though UnitedHealth and Intuitive Surgical are both in the healthcare space.
The third portfolio had Ball Corp (BLL) - Get Ball Corporation Report , CVS Health (CVS) - Get CVS Health Corporation Report , Xylem (XYL) - Get Xylem Inc. Report , Apple (AAPL) - Get Apple Inc. Report and ABInBev (BUD) - Get Anheuser-Busch InBev SA/NV Report as its top five stocks.
Cramer determined this portfolio was also perfectly diversified.
In the Lightning Round, Cramer was bullish on Box (BOX) - Get Box, Inc. Class A Report , Cummins (CMI) - Get Cummins Inc. Report , Verizon (VZ) - Get Verizon Communications Inc. Report , Morgan Stanley (MS) - Get Morgan Stanley Report , Principal Financial Group (PFG) - Get Principal Financial Group, Inc. Report and Johnson & Johnson (JNJ) - Get Johnson & Johnson Report .
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At the time of publication, Cramer's Action Alerts PLUS had a position in FB, GOOGL, JNJ, CVS, CSCO, AMZN, UNH, CRM, AAPL.