It doesn't matter if you've got the hottest hand in the room. When you're up big, the responsible thing to do is take some profits, Jim Cramer told his Mad Money viewers Wednesday. This is among the hottest stock markets we've ever seen, Cramer said, and you shouldn't take it for granted.
Tuesday we got stellar earnings from Salesforce.com (CRM) - Get Report and the stock responded by rallying an extraordinary 26% in a single day. Then there's Tesla (TSLA) - Get Report, a stock that's soared over 600% since Cramer went bullish on the technology company and automaker. These are amazing gains, Cramer said, and investors need to trim their positions and lock in some of their gains.
Facebook (FB) - Get Report on Wednesday told shareholders its advertising business may be hurt by Apple's (AAPL) - Get Report tougher privacy settings. What did shares do? They rallied 8.2%.
Whether it's Facebook or Apple or Amazon (AMZN) - Get Report, Cramer said the market has gotten too hot. Cramer said his late mother once told him, "it's time to take your winnings and go buy a nice sweater."
Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.
Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning. Today: Cramer's takeaways from the Salesforce earnings report.
Executive Decision: Shopify
In his first "Executive Decision" segment, Cramer spoke with Harley Finkelstein, COO of Shopify (SHOP) - Get Report, the online e-commerce platform that's up 175% over the past year, including another 5% Wednesday on the heels of another strong quarter.
Finkelstein said there's no doubt the pandemic has accelerated e-commerce by several years and has changed the face of retail forever. He said there are those retailers who are resistant to change and those who are resilient in times of change. Shopify caters to the latter, which is why entrepreneurs will lead the next wave of retail.
Cramer then spoke to Sarah Piani Yoo, founder and CEO of Blueland, a Shopify success story. She said that Blueland saw a big surge in demand as the pandemic got underway and Shopify's platform had all of the tools they needed to keep growing.
Marcus Wilson, cofounder of the sports apparel brand, NOBULL, also testified to how the Shopify platform was able to help them establish their brand of footwear and apparel brand and compete online with brick-and-mortar retailers.
Executive Decision: 3M
Roman said 3M is seeing strong demand across the board for its products and it has a lot of momentum going into the second half of the year. His company continues to ramp up production of N95 masks and they've already delivered billions around the globe as well as many other pieces of protective equipment to fight COVID-19.
Adding some color to the results, Roman said in healthcare, they're beginning to see a ramp up in elective procedures that have largely been sidelined by the pandemic. They're also seeing an uptick in automotive, both in the U.S. and in China.
Additionally, Roman noted that home improvement and construction are strong as people are investing in their homes. He said everything from home office supplies to cleaning products are all very much in demand.
Cramer said 3M offers both growth and a terrific dividend yield.
Executive Decision: Intuit
For his next interview, Cramer checked in with Sasan Goodarzi, president and CEO of Intuit (INTU) - Get Report, the small business accounting software provider which just announced an incredible quarter that included an 83% rise in sales.
Goodarzi said that small businesses have been hurting and Intuit continues to do everything they can to help them out. His company is handling everything from PPP loans to managing cash flows. The good news is that small businesses are resilient and are in inspiration for all of us.
When asked about tax season, Goodarzi said this year's extended tax season and quarantines meant more people than ever filed their taxes online and used TurboTax to help them file with live advice from tax experts.
Turning to the topic of the recovery, Goodarzi said each state is different. They are starting to see strength in services like real estate, landscaping and computer-related services, while other sectors, like fitness, education and restaurants remain challenged.
Cramer's Retail Watch List
In his No-Huddle Offense segment, Cramer added a few names to his list of favorite retailers. He said that his WATCH list, which includes Walmart (WMT) - Get Report, Amazon, Target (TGT) - Get Report, Costco (COST) - Get Report and Home Depot (HD) - Get Report, all remain strong, but after analyzing this quarter's results, there are a few more names worth noting.
Cramer said that Best Buy (BBY) - Get Report and Dick's Sporting Goods (DKS) - Get Report both benefitted as their competition got pancaked during the pandemic. Lowe's (LOW) - Get Report was also able to capitalize on the need for more home improvement. Cramer remained a fan of the dollar stores and added that Urban Outfitters (URBN) - Get Report was able to deliver an upside surprise.
What about everyone else? Cramer said he heard nothing encouraging from the likes of Nordstrom (JWN) - Get Report or Kohl's Stores (KSS) - Get Report. Even former favorite TJX Companies (TJX) - Get Report disappointed as apparel sales tumbled.
When it comes to retail, you have to stick with the winners, Cramer concluded. The big are only getting bigger, he said, and everyone else is getting crushed.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Wednesday evening:
Royal Dutch Shell (RDS.A) : "I don't want you to touch this one."
On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, AMZN, COST, FB, CRM.