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.
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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.
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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.
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.
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 DIS.