Strong Economy: Cramer's 'Mad Money' Recap (Tuesday 12/1/20)

A good market is one that can shake off negative news, says Jim Cramer. A great market is one that can ignore it entirely.
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A good market can shake off discouraging news, but a great market can ignore it entirely, Jim Cramer told his Mad Money viewers Tuesday. Today, the markets interpreted a deceleration in the growth at Zoom Video  (ZM) - Get Report as a sign that the stay-at-home economy is in trouble. But Cramer said despite what you may have heard, vast swaths of our economy are still doing extremely well.

Cramer explained that under normal circumstances, Zoom's beat-and-raise quarter would have been enough to propel its stock higher. But in the middle of a pandemic with shares already up 500% for the year, a pullback was already overdue.

The stay-at-home economy is alive and well, Cramer proclaimed. Just look at the strong Cyber Monday sales at Amazon  (AMZN) - Get Report, the guidance bump from Micron Technology  (MU) - Get Report and the positive signs of holiday sales at Apple  (AAPL) - Get Report. Cramer said working from home is a secular trend that's here to stay and our economy is still thriving, with homes, autos, steel, aluminum and cardboard just a few of the sectors that are surging.

Investors who doubt the economy's strength need only look at the coming IPO of Airbnb. If any company should be in trouble during this pandemic, it should be the travel-related Airbnb, Cramer said. But in reality, the company has turned a negative into a positive.

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Executive Decision: Salesforce.com

In his first "Executive Decision" segment, Cramer spoke with Marc Benioff, chairman and CEO of Salesforce.com  (CRM) - Get Report to learn more about his company's $27.7 billion acquisition of Slack  (WORK) - Get Report.

Benioff said that the Slack acquisition "changes everything." Companies are rearchitecting how they work and are rapidly adapting to their employees working from anywhere, Benioff noted, and by integrating Slack even tighter with Salesforce, connecting with customers and employees will become even easier.

Salesforce knows how to be successful, Benioff said, it's by making their customers successful. This quarter, Salesforce added both Zoom Video and T-Mobile  (TMUS) - Get Report as customers.

When asked about some of the negative feedback after the deal was announced, Benioff said that Salesforce has a long history of successful acquisitions and many analysts still don't fully understand the software market.

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Off the Charts

In the "Off The Charts" segment, Cramer checked in with colleague Carolyn Boroden for a technical read on the charts of the FAANG stocks of Facebook  (FB) - Get Report, Amazon, Apple and Netflix  (NFLX) - Get Report.

Looking at a daily chart of Apple, Boroden called out a pivotal low of $112 a share and a cluster of timing cycles around Nov. 24, both of which signal a rally is coming that could send shares between $127 to $147 a share.

Boroden saw similar patterns in the daily chart of Amazon, with timing cycles clustered around Nov. 2 signaling a move to between $3,461 and $3,737 a share.

For Facebook, Boroden felt shares could see a minimum of $306 a share after the momentum shifted on Nov. 10. Netflix followed the group, with timing cycles clustering last month between Nov. 9 and Nov. 12, with a rally to $306 a share possible.

EVs Losing Power

Until recently, the electric vehicle stocks were on fire, Cramer told viewers. But after Monday's implosion of Nikola NKLA, the entire group is again under pressure. That includes Switchback Energy Acquisition  (SBE) - Get Report, the special purpose acquisition company, or SPAC, that will soon be merging with ChargePoint.

Cramer said there's a lot to like about ChargePoint, the EV charging network that operates over 115,000 charging sites across the country. ChargePoint is an integrated solution that offers hardware, software, services and maintenance all in a single solution. During the pandemic, hardware sales grew by only 9%, but recurring revenues saw an impressive 39% gain.

The only problem with ChargePoint? It's valuation. Cramer said the coming reverse merger values ChargePoint at $3 billion, or $11 per share, which makes the deal too expensive, even after today's pullback. He recommended investors buy in only if shares continue to decline.

Save Our Stimulus

In his "No Huddle Offense" segment, Cramer said if Congress wants to be on the right side of history, they need to pass additional stimulus and help save small business.

While much of the economy remains strong, restaurants and other small businesses continue to feel the pain of this pandemic. How can we let them go under when the finish line is in sight, he asked? This is bigger than politics, Cramer concluded. Congress needs to step up and do the right thing.

Lightning Round

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

Wells Fargo  (WFC) - Get Report: "I think in the long term this is cheaper than all of the other banks. "

Snap  (SNAP) - Get Report: "I'd take out your cost and let the rest run."

Kinder Morgan  (KMI) - Get Report: "I don't like the oils or the pipelines and I want you to stay away. "

Roku  (ROKU) - Get Report: "This one is up big, so take some profits and let the rest run."

Nutanix  (NTNX) - Get Report: "This is a competitive space. I'm gonna say no."

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At the time of publication, Cramer's Action Alerts PLUS had a position in AMZN, AAPL.