Today's positive news about Pfizer's (PFE) - Get Report COVID-19 vaccine sent the markets soaring, Jim Cramer told his Mad Money viewers Monday, but that doesn't mean it's time to sell all of your stay-at-home stocks quite yet.
Cramer said the day's news should offer no doubt that we will win this war against the pandemic, but with COVID cases hitting new record highs, we still have a long winter ahead of us.
By Pfizer's estimates, the company will only have enough doses to treat 23 million people globally this year, and it will only be able to vaccinate 600 million throughout all of next year. That means it's still not too late to sell the office and retail REITs and the banks into any strength.
However, today's news means the airlines and railroads are likely to survive, and that's great news for Boeing Co. (BA) - Get Report and its suppliers, as it returns the 737 Max to service at the same time travelers begin returning to the airport. Cramer was also bullish on Apple (AAPL) - Get Report, Amazon (AMZN) - Get Report and the shipping stocks, like UPS (UPS) - Get Report, which are still in for a strong holiday season.
As for those stay-at-home stocks, Cramer said he wouldn't be selling Zoom Video (ZM) - Get Report or Peloton (PTON) - Get Report just yet, as most people aren't likely to get a vaccine until mid- to late 2021.
On Wall Street, stocks finished sharply higher Monday after Pfizer said the coronavirus drug candidate it's developing with BioNTech (BNTX) - Get Report prevented more than 90% of infections in a large-scale study. The report came on the same day the U.S. recorded its 10 millionth case of the coronavirus.
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Cord Cutting Is Here to Stay
Now that we've seen some light at the end of the COVID-19 tunnel, investors were quick to dump their biggest COVID winners. But Cramer told viewers that some COVID trends are here to stay, and the cord-cutting movement is one of them.
Once you've dumped cable TV in favor of streaming, you're not going back, Cramer said. This is a powerful, long-term trend that is with us to stay. Just look at the earnings from Roku (ROKU) - Get Report, which delivered a 73% rise in sales this quarter that resulted in a nine cents a share in earnings when analysts were expecting a 42 cents-a-share loss.
Shares of Roku plunged 12.4% Monday, while digital ad provider The Trade Desk (TTD) - Get Report dipped 7%. Cramer called these moves shortsighted, as Roku predicts another 40% in revenue growth for the fourth quarter.
Roku is taking market share and advertisers love it, Cramer explained, and streaming is becoming one of the few alternatives to advertising on social media. Many media companies that were once competitors are now partners, he said, as companies like Walt Disney (DIS) - Get Report and Comcast (CMCSA) - Get Report launch streaming services of their own that need to stream on Roku's platform.
Executive Decision: Polaris Industries
In his first "Executive Decision" segment, Cramer spoke with Scott Wine, chairman and CEO of Polaris Industries (PII) - Get Report, the off-road vehicle maker that saw its shares fall 8.7% as investors were quick to dump outdoor and recreation stocks.
Wine first commented on Veteran's Week by saying that he learned many important lessons from the military which have translated into the business world. He said Polaris is committed to hiring as many veterans as they can within their company.
Turning to their business, Wine said that demand is strong for their vehicles and Polaris continues to be supply constrained. He said it's not practical to expect their suppliers to ramp up production by 50% in a matter of months. Polaris is doing everything they can to grow as quickly as possible.
Polaris is also seeing strong demand for their light tactical vehicles being sold to the military. The company has debuted 11 new products for the military over the past 12 years and those vehicles will continue to be in demand, Wine said. That's because Polaris builds its vehicles to the exact specs the military needs.
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Executive Decision: L3Harris Technologies
For his second "Executive Decision" segment, Cramer also spoke with Bill Brown, chairman and CEO of L3Harris Technologies (LHX) - Get Report, the defense contractor with shares that rose 3.8% Monday after fears of a Democratic sweep in the election faded.
Brown said that a strong national defense is in everyone's interest, no matter who's in the White House. Our nation is pivoting on technology, he said, and that's why L3Harris's technologies for communications, artificial intelligence and space systems are so in demand. None of that will change under a Biden administration.
When it comes to today's warfare, our country needs resilient communications systems that can move faster to collect, process and act on information. L3Harris is the market leader, Brown said, and they see strong opportunities for growth.
When asked about their commitment to veterans, Brown noted that L3Harris employs over 7,000 veterans and has added 1,000 so far this year.
L3Harris continues to make investments in research and development, capital spending and hiring, Brown said, but they still generate enough free cash to boost their dividend and buyback stock to reward shareholders.
Call Them 'Robinhoodies'
In his No-Huddle Offense segment, Cramer said for months, professional money managers mocked the so-called "Robinhood" crowd -- younger investors who use the upstart online trading platform to invest in fractional shares of stock. Turns out, the Robinhood crowd got it right.
These investors took a chance on the cruise lines, for example, and today Carnival Corp. (CCL) - Get Report closed up 39% with rival Norwegian Cruise Line Holdings (NCLH) - Get Report up 26%. They bet on Ford Motor (F) - Get Report and General Electric (GE) - Get Report, both iconic American brands with low-priced stocks. They were right here, too.
Robinhood investors also can't get enough of electric vehicle stocks, and shares of Tesla (TSLA) - Get Report are up over 400% for the year with shares of Nio (NIO) - Get Report and Fisker (FSR) - Get Report also up big.
Turns out, these younger investors do a lot of homework after all.
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 AAPL, AMZN.