Wednesday's stock market action was dominated by merger deals, Jim Cramer told his Mad Money viewers, but just because a deal makes sense, that doesn't mean it'll get done. Cramer reminded viewers that they should never buy a stock based solely on takeover rumors. You can speculate on a takeover only if the fundamentals are sound.

Today's news that Xerox (XRX - Get Report) was looking to merge with Hewlett Packard (HPQ - Get Report) makes a lot of sense, Cramer said, but there's little chance HP will be interested in a merger. Buying Xerox as a stand-alone investment however, makes a lot of sense.

Then there are the rumors that Walgreens Boots Alliance (WBA - Get Report) is looking to take itself private. Cramer said this deal also doesn't make sense, as the drugstore business has been in trouble for a long time, which is why rivals like CVS Health (CVS - Get Report) merged with Aetna.

Finally, there's the news that Tiffany (TIF - Get Report) asked potential acquirer LVMH to raise their bid for the company. Cramer was also a fan of this deal, saying that Tiffany, the brand, is worth a lot more than Tiffany the retail operation. 

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.

Executive Decision: CVS Health

For his "Executive Decision" segment, Cramer sat down with Larry Merlo, president and CEO of CVS Health, which just posted a seven-cents-a-share earnings beat. Shares of CVS closed up 5.3% today and currently trade for just 10 times earnings.

Merlo credited his company's success to its 300,000 team members, all of which are dedicated to improving their customers' health. He said access to healthcare remains one of the biggest challenges, which is why CVS is meeting customers where they are with their HealthHUB concept.

Merlo explained that HealthHUBs take a portion of the front of the store and convert them into expanded Minute Clinics where nurse practitioners can perform 80% of the services provided by primary care doctors. HealthHUBs are planned for 1,500 CVS locations by the end of 2021.

Innovation is now part of the DNA at CVS, Merlo continued. He said delivery is one such innovation that is also rolling out to more locations across the country.

Finally, Merlo commented on the youth vaping epidemic. He said CVS was the first to stop selling cigarettes and they were glad to see tobacco usage decline. But now, vaping has that trend moving in the wrong direction and it is a trend that needs to be stopped, he said.

You know Cramer's a passionate Eagles fan, right? Don't miss his amazing Bull Market Fantasy, with live shows Tuesday and Thursday a 10:45 a.m. Eastern. It's free and it's fun.

Executive Decision: First Horizon National

In his second "Executive Decision" segment, Cramer spoke with Bryan Johnson, chairman, president and CEO of First Horizon National (FHN - Get Report) , which announced earlier this week it is merging with Iberia Bank (IBKC - Get Report) . Shares of First Horizon are up 14% over the past six months.

Johnson said the merger with Iberia will give First Horizon a strong presence throughout the Southeast, including new areas where they don't have a branches, including Alabama and Georgia. The deal will also give the combined bank a strong balance sheet to serve their customers in new ways.

Johnson continued by adding that he's very encouraged by the economic activity he's seeing, especially throughout the southeast. He said businesses are migrating to the area, which is great for their local communities. When asked why businesses choose the south, Johnson said there are a lot of advantages, ranging from favorable tax policies to an educated workforce that's ready for new challenges.

Finally, when asked for his thoughts on the Federal Reserve, Johnson said the he felt the Fed did the right thing by cutting rates and reversing their earlier hikes. He said the economy is strong and the rate cut will help keep things that way. 

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.

Rough Road for Lyft and Uber 

The ride sharing services Lyft (LYFT) and Uber (UBER) have been trading in tandem since their IPOs earlier this year. That was, until this week. Is now the time to add one to your portfolio?

Lyft reported impressive earnings earlier this week, Cramer said. The company has made great strides to boost its operating leverage and cut costs, resulting in a narrow-than-expected loss and guidance that shows path to profitability.

Uber, on the other hard, delivered weaker-than-expected results, made more complicated by the fact that the company is not a pure play on ride sharing. Its delivery service, Uber Eats, mirrored the weakness of GrubHub (GRUB - Get Report) , and even their freight services lagged in the quarter.

Cramer said he would not be a buyer of Uber, given the company's lockup period just expired, allowing up to one billion shares to now be traded. Lyft, however, could be a speculative investment, although shares are likely to head a little lower.

Stormy Forecast for Cloud Stocks 

In his "No-Huddle Offense" segment, Cramer pondered when the market will stop punishing the cloud stocks. He said stocks like HubSpot (HUBS - Get Report) had been market darlings, but on Wednesday the stock plunged 4.2% on good earnings. Cramer said most investors have probably never heard of HubSpot, which raises the question, why do you need this stock in your portfolio?

The problem is that for many momentum investors, it's simply too easy to sell HubSpot and move into any number of its rivals, of which there are many. That's why when HubSpot blamed poor execution for their weaker than expected guidance, investors headed for the exits.  

Lightning Round

In the Lightning Round, Cramer was bullish on L3Harris Technologies (LHX - Get Report) , Humana (HUM - Get Report) , CyrusOne (CONE - Get Report) and Microsoft (MSFT - Get Report) .

Cramer was bearish on Kinder Morgan (KMI - Get Report) , Farfetch (FTCH - Get Report) , Kraft Heinz (KHC - Get Report) , Switch (SWCH - Get Report) , U.S. Concrete (USCR - Get Report) , Annaly Capital (NLY - Get Report) and Aurora Cannabis (ACB - Get Report) .

Introducing TheStreet Courses: Financial titans Jim Cramer and Robert Powell are bringing their market savvy and investing strategies to you. Learn how to create tax-efficient income, avoid top mistakes, reduce risk and more. With our courses, you will have the tools and knowledge needed to achieve your financial goals. Learn more about TheStreet Courses on investing and personal finance here.

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 CVS, MSFT.