Stop saying the stock market doesn't make any sense, Jim Cramer told his Mad Money viewers Monday. There are plenty of companies whose products are in huge demand as the pandemic rages on, Cramer said, and all of them can be found in his COVID-19 index.
When cases spike, investors flock to the pandemic stocks, Cramer explained, as he reviewed the biggest winners in his COVID-19 index. And that's where investors should look: to the stay-at-home stocks that are thriving.
Topping the list was the Internet services company Fastly (FSLY) - Get Report, followed by Chegg (CHGG) - Get Report, Chewy (CHWY) - Get Report, Peloton (PTON) - Get Report and Emergent Biosolutions (EBS) - Get Report. Cramer said all of these companies have products that are in demand right now, from online learning, pet supplies and fitness, to the companies that make the supplies we'll need once a vaccine is ready.
Further down the COVID-19 Index list were other notable names, including Livongo Health (LVGO) - Get Report, the company helping people manage their diabetes, Zoom Video (ZM) - Get Report, now a household name, and Shopify (SHOP) - Get Report and Etsy (ETSY) - Get Report, both of which have helped millions of small businesses set up shop online. Plus, there's Costco (COST) - Get Report, and Salesforce.com (CRM) - Get Report. Microsoft (MSFT) - Get Report also made the list, thanks to reports it may buy the U.S. assets of TikTok.
These companies represent trillions of dollars in value, Cramer said, and when they rise, they're big enough to take the rest of the market with them.
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Executive Decision: Pinterest
In his first "Executive Decision" segment, Cramer spoke with Ben Silbermann, cofounder and CEO of Pinterest (PINS) - Get Report, the social network that shot up 36% on Friday after a substantial earnings beat.
Silbermann explained that e-commerce is great when you know what you want to buy, but when you're just looking for inspiration and ideas, that's when you need Pinterest. He said Pinterest users explore and discover things that interest them, and their platform is a great place for companies to advertise their offerings on a friendly, all-inclusive platform.
Silbermann added that Pinterest is growing all over the world, including in Europe, Asia and Latin America. International sales made up 9% of revenues last year, he said, but are trending toward 15% this year.
Finally, Silbermann noted that Pinterest supports diversity and inclusivity and is working hard to do better at every level of their organization.
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Executive Decision: Clorox
For his second "Executive Decision" segment, Cramer also spoke with Benno Dorer, chairman and outgoing CEO of Clorox (CLX) - Get Report, the consumer packaged goods company that just posted a 42-cents-a-share earnings beat. Shares of Clorox are up 51% so far in 2020.
Dorer said it's been an honor and privilege to serve as the head of Clorox, but now was the time to make a transition. He said Clorox has both a winning strategy and the momentum to see years of continued success.
When asked about his company's successes, he said they're seeing broad strength across all their markets. Clorox is taking market share and increasing household penetration, he said, all while providing more value to consumers.
Clorox is not taking the pandemic lightly; the company is playing offense, Dorer explained. They see lots of opportunity for growth in the U.S. market, and also elsewhere around the globe.
Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning. See what he said about Clorox on Monday.
Executive Decision: Atlassian
For his final "Executive Decision" segment, Cramer checked in Mike Cannon-Brookes, co-founder and co-CEO of Atlassian (TEAM) - Get Report, the collaboration software provider that fell 3.5% after reporting earnings this quarter.
Cannon-Brookes said he was proud of the quarter they delivered and his company remains focused on the long term and building the best business for their customers. He noted Atlassian now has 100 customers paying over $1 million a year and that number is up 74%.
Atlassian is using the pandemic to invest in their business, just as they did during the recession in 2008, Cannon-Brookes said. The company plans to hire 1,000 people over the next 12 months and now offers their software free to teams with fewer than 10 people.
The Real Retail Casualties
In his "No Huddle Offense" segment, Cramer reiterated that the majority of the economic devastation in our country is falling on companies that aren't publicly traded.
So far we've seen a number of high-profile bankruptcies, from JC Penney to GNC nutrition and most recently, Lord & Taylor and Men's Warehouse.
But these business failures were likely even before the pandemic, and they aren't nearly as devastating as the wave of small business failures that will soon be upon us if we don't shut down this virus quickly.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Monday evening:
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At the time of publication, Cramer's Action Alerts PLUS had a position in MSFT, COST, CRM, CLX.