This is what panic looks like, Jim Cramer told his Mad Money viewers Thursday after the largest down day stocks have seen in years. But panic is never an investing strategy, which is why Cramer's already compiling a list of stocks that will bounce back first and can now be bought on continued weakness.
Investors should be prepared for still more selling Friday, ahead of the weekend, and also probably on Monday as well, Cramer told viewers. As the selling subsides however, here are some stocks to consider.
Cramer called Adobe Systems (ADBE) - Get Adobe Inc. Report the best of the cloud kings. He was also bullish on Etsy (ETSY) - Get Etsy, Inc. Report, and on Moderna (MRNA) - Get Moderna, Inc. Report which might be developing a vaccine for the coronavirus.
Others tech names making Cramer's buy list included chipmaker Nvidia (NVDA) - Get NVIDIA Corporation Report, RingCentral (RNG) - Get RingCentral, Inc. Class A Report, Zoom Video (ZM) - Get Zoom Video Communications, Inc. Class A Report, Shopify (SHOP) - Get Shopify, Inc. Class A Report and payment processor Square (SQ) - Get Block Inc Class A Report, which might be a takeover candidate. Teladoc (TDOC) - Get Teladoc Health, Inc. Report also made the list as people avoid the doctor's office for fears of getting sick. Finally, he said that The Trade Desk (TTD) - Get Trade Desk, Inc. Class A Report, an online advertising company, is also a great way to play the new stay-at-home trend.
High growth stocks with good balance sheets are the ones that bounce the best, Cramer concluded, and that's why he likes all of these great companies.
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Executive Decision: Etsy
Speaking of Etsy, in his first "Executive Decision" segment, Cramer sat with Josh Silverman, CEO of the artisanal online marketplace that just posted earnings of 25 cents a share while Wall Street estimates were looking for just 16 cents a share.
Silverman said that in a world where merchandise is becoming more commoditized, Etsy stands for something different and is keeping commerce human. Especially now, when many companies are worried about their supply chains and workers going to their factories, Etsy's workforce already works from the safety of their homes.
When asked what's driving growth, Silverman explained that Etsy's TV campaigns are doing exceptionally well at reminding customers when they should be thinking about the site. Most customers have a great experience on Etsy, he said, they just need to be reminded.
Finally, when asked about their committed to the environment, Silverman said that Etsy's biggest factor in its carbon footprint is the shipping used to get items from sellers to customers. Since that is not something they can control, they have committed to offsetting the carbon produced by those activities.
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Executive Decision: Workday
Bhusri said that despite the recent coronavirus outbreak, companies still want to attract the best employees to their company and management still wants the best information possible on their workforce and their operations. That's why Workday's business continues to be strong. One out of every four Workday customers is now using the company's full suite of services, including finance and human resource clouds, he added.
That said, employees are still worried about the coronavirus, especially in Asia and Europe, which is why they are being smart about their travel plans. Workday recently decided to postpone their annual sales conference and offer the information virtually instead.
Bhusri said the company expects to be back to business as usual by the fall.
Executive Decision: Trade Desk
Green said business is strong in all segments of the business, but political advertising is icing on the cake. He said The Trade Desk is representing every presidential nominee candidates as well as local and state-level candidates and causes.
Green added that when it comes to online advertising, Google GOOGL owns search, Facebook FB owns social, but The Trade Desk is becoming the largest player in the rest of the Internet, which includes ads on streaming media. If you're streaming videos, then you're likely watching an ad served by The Trade Desk, he said.
Wait for the Great Companies
At times like these, investors need to manage their risk, Cramer cautioned viewers. Even best-of-breed stocks can harbor more risks than investors might be aware of. Case in point: Southwest Airlines (LUV) - Get Southwest Airlines Co. Report.
Southwest is a terrific airline, Cramer said, and one that had already been suffering from Boeing's BA ongoing 737MAX saga. On the surface, you might think with shares headed even lower thanks to the coronavirus and lower oil prices helping to bolster Southwest's bottom line, the stock would be a buy. But Cramer said too many investors are hoping for a quick cure or vaccine for the coronavirus, and that makes it still too risky to buy.
Cramer made it clear that he's not picking on Southwest. He only used it as an example because if a great company like Southwest still isn't yet a buy, the stock you're considering buying probably isn't either.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Thursday evening:
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