If you're really compelled to sell some technology stocks, ask yourself what it is you're really selling, Jim Cramer told his Mad Money viewers Tuesday, as he continued his week of tech-focused shows from San Francisco. If you're selling a technology ETF, Cramer said you have his blessing, but if you're selling one of the tech stocks that are working, then you'd better think twice.
Many investors are worried that the lingering trade war could evolve into a technology war, with Chinese companies only buying from China, and the U.S. buying from everywhere except China. That seemed to be what Cisco Systems (CSCO) implied with its weak outlook this quarter. But technology marches on, Cramer reminded viewers, and just as it evolved from mainframes to PCs to the Internet, it is once again evolving far beyond what we think of as traditional.
Every company needs to digitize or die, Cramer said, and that makes technology essential. Technology is how Levi Strauss (LEVI) reinvented itself in the retail landscape. It's also why Kohl's Stores (KSS) plunged 19% today, as the company continues to be in denial of what it truly needs to stay relevant. Technology plays a vital part of every industry and that's why so much of technology is poised for long-term gains.
Even Apple (AAPL) isn't likely to be hurt by the trade war, Cramer said, as they've managed to thread the needle perfectly, creating jobs for both countries.
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Executive Decision: RH
In his first "Executive Decision" segment, Cramer sat down with Gary Friedman, CEO of high-end retailer RH (RH) . The company has just added Warren Buffett as one of their largest shareholders.
Friedman said he's very honored to have Buffett recognize the value being created at RH. He said the company is building a luxury platform and that's the only way to make luxury profits.
Friedman added that people often misunderstand RH, thinking the company is hostage to the trade war, but it's not. He said the U.S. and China have a major trade imbalance and it's important to correct that imbalance. In the end, everything will work out, but in the meantime, the U.S. is enjoying low interest rates, full employment, no inflation and lots of money flowing in from tariffs.
When asked about what's next for RH, Friedman said that they have a new view of the world, one where America is not all there is. The RH brand cam carry itself internationally, he said, and that's where they are headed next.
Executive Decision: Salesforce.com
In his second "Executive Decision" segment, Cramer also sat down with Marc Benioff, chairman and co-CEO of Salesforce.com (CRM) , at the kickoff of the company's annual Dreamforce user's conference.
Benioff said over 171,000 people will be in attendance at this year's event in San Francisco, and they all come to learn more about the $1 trillion economy that's being built around the Salesforce platform. The company has many innovations and announcements scheduled for Dreamforce this year, including a smart speaker for built in partnership with Amazon, which allows users to speak directly to Salesforce's Einstein smart assistant.
Benioff noted that since their IPO in 2004, Salesforce has returned 3,500% to shareholders, but shareholders aren't all that matters. Salesforce is committed to every stakeholder, including their employees, suppliers, the communities they serve and even the planet. Salesforce is already a NetZero company and aims to be run 100% on renewable energy by 2025.
Benioff said he continues to be focused on the success of his customers and the success of all stakeholders.
Executive Decision: Nvidia
In his next "Executive Decision" segment, Cramer checked in with Jensen Huang, founder, president and CEO of chipmaker Nvidia (NVDA) , a stock making new highs for the year.
Nvidia makes technology to make the impossible, possible, Huang said. The company's chips are powering the cutting edge of innovations in artificial intelligence, machine learning, gaming and the the data center.
Huang showed off one of those innovations, a real-time, Nvidia-powered simulation of the fluid dynamics involved in landing a spacecraft on Mars using only booster rockets. He explained the simulation slows the spacecraft from 12,000 miles an hour to zero in just six minutes, and requires the same computing power as rendering 25,000 movies all at the same time.
The applications of artificial intelligence are limitless, Huang added, from self-driving cars to better computational photography on your smart phone. Nvidia continues to make great progress in natural language processing, which is key to human understanding.
When asked about the company's merger with Mellanox (MLNX) , Huang said the regulatory discussions are ongoing and he expects a deal by early next year. He said both companies will be fine as separate entities, but combined, they could provide world-class innovations that simply aren't possible separately.
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Executive Decision: Square
To end the show, Cramer spoke with Amrita Ahuja, CFO of Square (SQ) , the payments processor that's grown into a whole lot more.
Ahuja said that while many people think of Square as just a credit card processing tool, the company's mission is economic empowerment. Square helps everyone, from individuals and small business to big businesses, participate in the economy.
Square got its start with payment processing 10 years ago, Ahuja said, but it now offers 20 different products to help business with capital, loyalty, marketing and more.
Ahuja commented on Square's acquisition of Caviar, saying that the deal brings together two great ecosystems that have tremendous opportunities to grow, cross-sell and connect to one another.
Cramer said Square remains a terrific financial technology company and should be a part of your portfolio.
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At the time of publication, Cramer's Action Alerts PLUS had a position in CSCO, KSS, AAPL, NVDA, CRM, NVS.