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That's why so many investors got excited over a rumor that Walmart (WMT) - Get Free Report might buy Jet.com, a website offering low prices. Jet.com has yet to turn a profit, Cramer noted, but deals like this may be the only way the backs and mortar giant can compete with Amazon.com (AMZN) - Get Free Report .
Then there's Apple (AAPL) - Get Free Report , the Action Alerts PLUS holding that is so much more than a hardware story. Apple is all about the Internet, with the company's services and app stores approaching Fortune 100 status all on their own.
And what about Clorox (CLX) - Get Free Report ? The company's CEO told Cramer Wednesday that Clorox is ramping up its digital and social media spending to 40%. Why? Because the Internet is where your customers are.
Even payments processor Square (SQ) - Get Free Report is getting an Internet boost, as investors fret less over the company's small business lending and focus more on the strong growth of its processing services. That's the real reason shares shot up 8.4%, Cramer said.
The Internet is a beast, Cramer concluded. If you don't feed it, it will eat you alive.
Buy Johnson Controls
When a company has a transformation catalyst on the horizon, investors should take notice, Cramer told viewers. That's why the stock of Johnson Controls (JCI) - Get Free Report , which has not one, but two huge catalysts coming, is worth noting.
Cramer has proposed for years Johnson Controls break itself up to unlock value. Indeed, the company announced just that, the spinoff of its slower-growing automotive seating division later this year. That leaves Johnson Controls as an industrial, with building efficiency and power solutions businesses.
But Johnson Controls took things one step further, announcing the acquisition of Tyco International (TYC) for $16.5 billion earlier this year. Cramer said this move makes the company a true diversified industrial that can bundle a host of construction products, all while enjoying $500 million in synergies over the next three years.
Given these two catalysts are both coming this year, Cramer said Johnson Controls will demand a higher valuation than its current 10.5 times earnings. The stock will be compared to other diversified industrials including Honeywell (HON) - Get Free Report at 16 times earnings and General Electric (GE) - Get Free Report at 18 times earnings.
More Phil Knight
Knight said Nike had a lot of touch-and-go moments in its early days. He said he always knew the company could fail but never thought it would and just kept pressing forward to overcome obstacles. Through it all, Knight said building Nike was the most fun he's ever had.
Knight also commented on Oregon, the state where Nike is based. He said every geography has its own culture and Oregon has certainly been a major character in the Nike story, which he described in great detail in his book Shoe Dog.
Cramer and Knight also discussed entrepreneurship in America today. Knight said Nike's biggest challenge is always finding capital, something that's been largely solved by our robust venture capital market. That said, he noted a downturn in entrepreneurial spirit, something he hoped would be a short-term problem.
Knight also commented on Nike's "girl effect," where the company invests in young women in developing countries, offering them education and opportunities to succeed in business. He said the program is having a real impact.
Executive Decision: Kevin Sayer
For his "Executive Decision" segment, Cramer sat down with Kevin Sayer, president and CEO of glucose monitoring company DexCom (DXCM) - Get Free Report . Shares of DexCom are up 39% since Cramer last checked in five months ago and a full 700% over the past five years.
Sayer said not all glucose devices are created equal and DexCom has the first device being considered to make insulin dosing decisions on its own. He said using a DexCom device is far superior to pricking a finger to do it manually. The DexCom app allows patients to see arrows and trends and can even send alerts to family and medical providers when needed.
DexCom patients are also always less than 90 days away from the latest technology, as they can upgrade when the under-the-skin sensor needs replacing. The DexCom app is also regularly updated with new features for patients and their doctors.
Sayer noted DexCom has made history with its device and will do the same when it comes to commercializing it,. The company is pushing forward with new channels and partners to get the technology in front of more patients.
Cramer was bearish on LendingClub (LC) - Get Free Report , W. P. Carey (WPC) - Get Free Report , Stonemor Partners (STON) - Get Free Report , Energy Transfer Partners (ETP) , Constellation Brands (STZ) - Get Free Report and Enbridge Energy Partners (EEP) .
No Huddle Offense
In his "No Huddle Offense" segment, Cramer warned investors to never buy a stock that's in the middle of a short squeeze. There will always be a better price.
Investors who chased the stock higher got bit, however, as shares quickly settled up just 50 cents a share.
That's why Cramer told viewers to always invest based on the fundamentals. Given the nature of Herbalife, the stock is hard to value. The company is controversial but does have 20% growth. Based on Cramer's calculations, $67 a share is a fair price for Herbalife, which is why paying upwards of $69 a share, as some investors did, made no sense.
Cramer said he can't endorse owning Herbalife yet, and he's taking a wait-and-see approach to see if the company can sustain its earnings.
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL and GE.