Skip to main content

We can't be as bullish as we'd like to be, Jim Cramer admitted to his Mad Money viewers Wednesday. While the comments from Federal Reserve chairman Jay Powell were exactly what we wanted to hear, those words may soon be tempered by President Trump, who was hoping for a lot more.

The stock market doesn't care about the past, it only cares about the future, Cramer reminded viewers. So with the Fed likely to begin cutting interest rates as early as July, that means we've entered the rate-cut cycle, which makes the economy stronger and stocks more valuable.

Typically, that would mean buying aggressively into retail, housing and the financial stocks, Cramer added, because the Fed told us they are "closely monitoring" the slowdown in business investment to ensure it won't bleed over into the consumer sector.

Unfortunately, this is not a typical environment, Cramer cautioned. Powell's refusal to cut rates immediately and roll back his ill-timed December hike will likely anger Trump, which will only add uncertainty to the markets. That's why Cramer said he can't be overly bullish, even though he typically would be.

Cramer and the AAP team are poring over the Fed's interest rate decision. 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.

Know Your IPO

In his "Know Your IPO" segment, Cramer looked into last week's IPO of the cybersecurity company Crowdstrike (CRWD) - Get CrowdStrike Holdings, Inc. Class A Report , which came public at $34 a share and rocketed to over $77.

Cramer said there are a lot of cybersecurity companies out there, but what makes Crowdstrike unique is its cloud computing component using data from all of its customers, combined with artificial intelligence, to predict threats and help prevent them.

Crowdstrike is a fast-growing company with 110% sales growth last year and a high retention rate for existing customers. The company is aggressively investing into its business, making it not profitable at the moment.

Cramer said there's a lot to like with Crowdstrike and he should have been more focused on the deal initially. However, at $77 a share, the stock now trades for over 70 times sales -- an astronomical number that no investor should pay. Cramer said even Okta (OKTA) - Get Okta, Inc. Class A Report and ZScaler (ZS) - Get Zscaler, Inc. Report trade for a fraction of what Crowdstrike is currently selling for.

And Then There's Slack

There's another red-hot IPO coming this week and it's the enterprise communications company, Slack. While not technically a traditional IPO, Slack will be issuing shares as a direct listing, similar to that of Spotify (SPOT) - Get Spotify Technology SA Report .

Slack is replacing email with team chat channels that are becoming indispensable at many companies. Slack has a freemium model to encourage adoption and pay as you grow and the service now sports over 10 million active daily users.

But for as good as Slack is, Cramer said, he's not a fan of the company's dual share structure that gives no real voting power to those investing now. The company is also forecasting slower revenue growth in 2020.

That said, Cramer said he'd bless buying shares of Slack up to $40 a share.

Read: Slack's Reference Price Set at $26 by NYSE for Direct Listing Thursday

Scroll to Continue

TheStreet Recommends

The Adobe Transformation 

We're entering the golden age of creativity, Cramer told viewers, and that's perfect for a company like Adobe Systems (ADBE) - Get Adobe Inc. Report , a stock that rose 5.2% Wednesday after reporting another spectacular quarter.

Adobe is all about helping companies thrive online, Cramer explained and nowhere is that trend more visible than in retail. Bricks-and-mortar retailers continue to struggle against their online competition, he said, which is when even great department stores like Macy's (M) - Get Macy's Inc Report and Nordstrom (JWN) - Get Nordstrom, Inc. Report  are having a tough time. Just about everything you can buy at Gap Stores (GPS) - Get Gap, Inc. Report or L Brands (LB) - Get L Brands, Inc. Report you can find online for less, Cramer said, and that's why Adobe's software and platforms are so valuable.

When it comes to the digital transformation, Cramer said he's sticking with Adobe.  

On Real Money, Cramer takes a closer look at how Adobe (ADBE) - Get Adobe Inc. Report is changing the retail landscape. Get more of his insights with a free trial subscription to Real Money.

Executive Decision: Wix

For his "Executive Decision" segment, Cramer spoke with Avishai Abrahami, co-founder and CEO of Wix (WIX) - Get Ltd. Report , the website creation tool with a stock that's risen 60% in 2019.

Abrahami said Wix was able to add 6.6 million new free users last quarter and over 180,000 paid subscribers. The reason for their growth is simple, he said, there are still a lot of small and midsize businesses that need online services. He said the market potential for Wix remains enormous.

Wix offers a lot more than just websites, Abrahami added. They can also help small businesses design their sites with professional designers and help them with advertising, promotion, social media and more. Wix is even expanding into data tools with new offerings that will be coming in the next six months.

Lightning Round

In the Lightning Round, Cramer was bullish on American Tower (AMT) - Get American Tower Corporation Report , Kohlberg Kravis Roberts (KKR) - Get KKR & Co. Inc. Report , Seagate Technology (STX) - Get Seagate Technology Holdings PLC Report , Micron Technology (MU) - Get Micron Technology, Inc. Report and LendingTree (TREE) - Get LendingTree, Inc. Report .

Cramer was bearish on Signet Jewelers (SIG) - Get Signet Jewelers Limited Report .

Introducing TheStreet Courses: Financial titans Jim Cramer and Robert Powell are bringing their market savvy and investing strategies to you. Learn how to create tax-efficient income, avoid top mistakes, reduce risk and more. With our courses, you will have the tools and knowledge needed to achieve your financial goals. Learn more about TheStreet Courses on investing and personal finance here.

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.

3 Things That Investors Need to Watch Ahead of Slack's Direct Listing

At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.