Inflation Scare: Cramer's 'Mad Money' Recap (Friday 2/26/21)

Look for the opportunity created by the selling in tech shares this week.
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We're in the grips of an inflation scare, Jim Cramer told his Mad Money viewers Friday. Its been a nightmare for growth stocks and especially technology. But fortunately, we've seen these scares before and we know to buy, buy, buy once the selling subsides.

Cramer said his game plan for next week hinges on Friday's non-farm payroll report. If there's a pickup in employment, investors should expect another big wave of selling as the value of those high-growth earnings will be eroded yet again.

Earlier in the week, Cramer said he'll be watching for strong earnings from Zoom Video  (ZM) - Get Report and Lemonade  (LMND ) - Get Report on Monday. Lemonade may even see a short squeeze as 11% of their shares are currently sold short.

Next, on Tuesday, we'll hear from Target  (TGT) - Get Report and Nordstrom  (JWN) - Get Report. Cramer said Target keeps getting better and better and Nordstrom is too cheap to ignore.

Wednesday sees more retail earnings from Dollar Tree  (DLTR) - Get Report and American Eagle Outfitters  (AEO) - Get Report. Cramer expected good things from both. He was also bullish on Wendy's  (WEN) - Get Report and data warehousing giant Snowflake  (SNOW) - Get Report.

Cramer's only sell of the week comes on Thursday with Kroger KR, the grocery chain that continues to see strong competition. The weakness in Kroger will be tempered by Cramer fav Costco COST, which also reports.

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Executive Decision: Arista

In his first "Executive Decision" segment, Cramer spoke with Jayashree Ullal, CEO of Arista  (ANET) - Get Report, the cloud networking equipment provider.

Ullal said that Arista's goal over the last decade has been to move the world to the cloud, but the next decade will revolve around diversifying their solutions to move beyond just the cloud titans and into enterprise and financial applications as well.

No single company can do it all, Ullal added, which is why Arista has partnered with best-of-breed companies like Palo Alto Networks  (PANW) - Get Report to help secure their offerings. The company's products now seamlessly blend custom silicon hardware with proprietary software solutions.

When asked about the pandemic, Ullal predicted one to two more quarters before the recovery is in full swing. Arista always plans for the worst case scenarios however, which is why they continue to succeed in this challenging environment.

Executive Decision II: Workday

For his second "Executive Decision" segment, Cramer spoke with Aneel Bhusri, co-CEO of Workday WDAY, the human resources software company that just posted strong quarterly results. Shares of Workday were lower by 2.4% Friday along with the broader markets.

Bhusri was bullish on the outlook for Workday in 2021. He said they expect bookings to accelerate as the economy recovers, although it may take some time for the growth to appear in their subscription accounting model.

Bhusri said the key to thriving in the pandemic has been the ability to adapt quickly to the changing landscape, and that's what Workday's platform allows companies to do. Employers are desperate to assess their employees' happiness and engagement in our new work-from-home world and Workday's pulse surveys are just one tool that's now available to them.

Some notable wins for Workday this quarter included Labcorp LH, Caterpillar CAT and athletic apparel giant Nike NKE.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer sounded off against the traders who piled into GameStop  (GME) - Get Report this week, hoping for a repeat of three weeks ago. He said these rebels without a cause have turned into rebels without clue.

The people buying GameStop this week, sending share back up 150%, don't care about the company, Cramer said, they're again trying to stick it to the hedge funds and rally for the little guy. But with the short interest in GameStop only a fraction of what it was a few weeks ago, what's the point?

Cramer's been a champion of individual investors for almost two decades. He left his hedge fund to focus exclusively on individuals, having written seven books, over 30,000 articles and of course, producing 15 years of Mad Money. He said while the original GameStop thesis was utterly brilliant, this week's action will only get people hurt.

Lightning Round

Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Friday evening:

Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Friday evening:

NantKwest  (NK) - Get Report: "I'm going to say yes to this speculative company. I'm fine with it."

First Solar  (FSLR) - Get Report: "This should be the year for First Solar, but if I want solar, I'm going with Elon Musk and Tesla  (TSLA) - Get Report."

Fair Isaac  (FICO) - Get Report: "I think you're fine with this one. "

Madison Square Garden Sports  (MSG) - Get Report: "I think this is a good idea. It's worth a lot more."

Rocket Companies  (RKT) - Get Report: "I think they're terrific and they've done well."

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