The FAANG stocks have led the market higher and they're going to continue to lead us higher, Jim Cramer told his Mad Money viewers Monday. While some money managers are advocating to rotate into the oils and the cyclical stocks, Cramer said he's sticking with the winners.
The FAANG stocks of Facebook (FB) - Get Report, Amazon (AMZN) - Get Report, Apple AAPL, Netflix (NFLX) - Get Report and Alphabet (GOOGL) - Get Report aren't economically sensitive, Cramer said, they're in charge of their own destiny.
Facebook has changed its image from one of the most hated companies to a champion of small business and its advertising platform is second to none.
Shares of Apple may seem overvalued at 30 times earnings, but with a falling U.S. dollar, Apple's overseas earnings are going to translate into huge profits.
Amazon remains the most essential retailer in America, and with Cyber Monday, look for more estimate bumps coming soon.
Then there's Netflix, the streaming media giant that still knows exactly what we want to watch, even in an environment where there's not a lot of new movies being released. Cramer said investors continue to underestimate Netflix.
Finally, there's Alphabet, whose advertising platform has been a big winner during the pandemic and is poised to be an even bigger winner as vaccines begin distribution and travel advertising returns.
Cramer said the calls to rotate into the oil stocks just don't make any sense, as many oil producers can't earn a profit with crude oil prices being so low. Rotating into cyclicals would also be a bad move, as a return to normal for the economy is still likely many months away.
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Executive Decision: S&P Global, IHS Markit
In his first "Executive Decision" segment, Cramer spoke with Doug Peterson, CEO of S&P Global (SPGI) - Get Report, and Lance Uggla, chairman and CEO of IHS Markit (INFO) - Get Report, which on Monday announced a merger in the financial information market worth $44 billion.
Peterson said their companies will combine two high-growth areas of the financial markets and the new entity will include 76% recurring revenue. He noted there's almost zero overlap between the two companies and they don't expect any regulatory issues.
Uggla said by combining their information assets and content delivery networks, they can create whole new categories of information products using the latest in analytics and artificial intelligence. "Nothing else beats this combination," Uggla concluded.
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Executive Decision: Dell Technologies
For his second "Executive Decision" segment, Cramer also spoke with Michael Dell, chairman and CEO of Dell Technologies (DELL) - Get Report, which just posted a 62-cents-a-share earnings beat on a 3% increase in revenues.
Dell said it was a strong quarter for his company, as it makes strides into services. He said 11% of their revenues are now deferred thanks to its many services.
When asked about their earnings, Dell explained that everything is now happening in the home, from work and education to entertainment -- and that's led to a surge in consumer spending on technology. Many families are becoming a "one laptop per person" family and Dell is riding that wave.
That's not to say that enterprise spending and the data center isn't strong as well. Dell noted that they are seeing growth in many areas including analytics, AI and 5G networking. Shares of Dell are up 42% over the past 12 months.
Executive Decision: Carvana
Garcia explained that Carvana continues to build a great experience for their customers and is able to make more money per vehicle sold by vertically integrating their operations to cut costs.
Garcia added that Carvana is a lot more than just a place to buy cars online. They use modern technology to give customers the best selection and price as well. The company's inspection and refurbishment centers make sure every car will delight its new owner and if not, Garcia said they offer a 7-day return policy.
When asked about competition, Garcia said their model isn't a secret. Carvana has spent eight years perfecting their model and they come to work every day to make it even better.
Tesla Is the Next Tesla
In his No-Huddle Offense segment, Cramer reminded viewers if they're looking to invest in the next Tesla TSLA, they should be investing in Tesla. That's because Tesla makes the most popular EVs on Earth. The company makes them in America, China and soon, in Europe. And, as of a year ago, Tesla is profitable.
There are many that have tried to make a better EV, but so far, all have failed. The others are mostly just hype, he said, as we saw from the 27% plunge in Nikola (NKLA) - Get Report again today. Cramer said he's even getting nervous about his recommendation of Plug Power (PLUG) - Get Report, as insider selling could derail that stock's recent rally.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:
Lemonade (LMND) : "This one is fantastic."
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At the time of publication, Cramer's Action Alerts PLUS had a position in FB, AMZN, AAPL, GOOGL, JNJ.