Skip to main content

Individual Investors Are Back: Cramer's 'Mad Money' Recap (Monday 12/7/20)

Jim Cramer salutes the new generation of investors as independent and optimistic.
  • Author:
  • Publish date:

It's time to stop disrespecting younger investors and start learning from them, Jim Cramer told his Mad Money viewers Monday. The pros on Wall Street aren't the only group that matters anymore, Cramer said, and this new wave of investors cares about totally different things than the old guard.

How are younger investors different? For starters, they don't believe in slow-moving index funds, Instead, they prefer to invest in fast-growing individual stocks. Next, they are rigorously independent and don't look to Wall Street for research and recommendations. 

Despite all of this year's chaos, younger investors never lost hope. This group is wildly optimistic, Cramer said, and they have no problem looking past the pandemic and the election towards a bright future. That's why stocks like Norwegian Cruise Line Holdings  (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report have been able to soar in the middle of a crippling economic slowdown. Younger investors have time to wait for the recovery to occur.

The final thing younger investors have going for them are their commitment to a cleaner, sustainable future. While seasoned Wall Street veterans still don't believe in clean energy and electric vehicles, younger investors are buying into sustainability and socially responsible companies at a record clip.

Cramer said the pandemic has been the ultimate changing of the guard when it comes to stocks. It's been a subtle shift that many might not have even realized, but commission-free trading has ushered in a whole new generation that's already having a huge impact on Wall Street.

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.

Executive Decision: ServiceNow

In his first "Executive Decision" segment, Cramer spoke with Bill McDermott, CEO of ServiceNow  (NOW) - Get ServiceNow, Inc. Report, the cloud-based software provider that's propelling companies into the digital revolution.

McDermott described ServiceNow as a digital platform for a digital world, a business integration engine that helps companies capitalize on the biggest opportunity of our generation: digital transformation.

ServiceNOW lets companies build all-new digital experiences in days instead of weeks, McDermott added, and that's why 85% of the Fortune 500 companies are using ServiceNow's platform.

From Walt Disney  (DIS) - Get Walt Disney Company Report to Zoom Video  (ZM) - Get Zoom Video Communications, Inc. Class A Report to the NBA, everyone needs to adapt to our new digital world, McDermott said. ServiceNow is proud to be the workflow partner of the NBA and WNBA as well as for many public and private entities around the globe.

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.

Executive Decision: API Group

For his second "Executive Decision" segment, Cramer also spoke with Russ Becker, president and CEO of API Group  (APG) , the life safety company with shares up 70% since April.

Becker explained that after speaking to private equity and considering a traditional IPO, API Group's reverse merger with a SPAC, or special purpose acquisition company, "felt like the right home" for the company.

API Group is in the fire protection and sprinkler system business, Becker said, but they also have a large services business which he felt gave the company a "protective moat" around them.

When asked about their biggest challenges as a public company, Becker said that it is simply telling API Group's story and getting the attention of investors.

Scroll to Continue

TheStreet Recommends

Know Your IPO

In his "Know Your IPO" segment, Cramer considered the red-hot IPO of DoorDash, the food delivery service that's scheduled for later this week.

DoorDash currently connects 400,000 merchants to over 900 million consumers via nearly one million "dashers." The company enjoys 50% market share in the U.S. and has been growing like a weed during the pandemic with revenues up over 200%.

Cramer said there's a lot to like about the DoorDash story. The company has both market share and growth, and even though it is still investing for growth and losing tons of money, its margins are moving in the right direction.

The big elephant in the room, however, is whether DoorDash's revenues are sustainable once the pandemic ends. That means their stock's valuation becomes critically important.

At the midpoint of the expected IPO range, DoorDash is valued at seven times sales, which is cheap if the growth is maintained. Cramer urged investors to be cautious however, and only invest if they can get shares below $100.

Too Risky to Be Right?

In his No-Huddle Offense segment, Cramer said euphoria is dangerous and always ends in tears.

Cramer said the bears have been wrong at every turn in this market. He said the countless experts and commentators are hopelessly cautious on individual stocks because no one ever got punished for being too cautious.

But as he said at the top of the show, younger investors are a lot smarter than many people think and they've proven the "experts" wrong time and time again by not being afraid to take risks and show a little optimism in a world where optimism is hard to find.

Lightning Round

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:

Domino's Pizza  (DPZ) - Get Domino's Pizza, Inc. Report: "I think Domino's is very good and I think it's going to keep on winning."

Gilead Sciences  (GILD) - Get Gilead Sciences, Inc. Report: "Gilead had some good news and the stock went down. That means sell."

Bloom Energy  (BE) - Get Bloom Energy Corporation Class A Report: "I'm a believer but I don't want to be greedy. Lock in some gains."

Acadia Pharmaceuticals  (ACAD) - Get ACADIA Pharmaceuticals Inc. Report: "This is a difficult area but this is a good one."

Lennar  (LEN) - Get Lennar Corporation Class A Report: "I think Lennar is a good company."

Li Auto  (LI) - Get Li Auto Report: "I prefer Nio  (NIO) - Get NIO Inc. (China) Report to this one but I'm wary of Chinese stocks. "

Veritiv  (VRTV) - Get Veritiv Corp Report: "What a remarkable company. This is a very very good story. "

CryoPort  (CYRX) - Get CryoPort, Inc. Report: "This is a tough business and you need to be careful."

1-800-Flowers  (FLWS) - Get 1-800-FLOWERS.COM, Inc. Class A Report: "This one doesn't intrigue me. There are a lot of other stocks I like more."

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 DIS.