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Tech and Science: Cramer's 'Mad Money' Recap (Tuesday 5/5/20)

Jim Cramer says science and technology are responsible for this market strength and we might be seeing the end of the healthcare recession.
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Is the market's whole move higher fueled by unrealistic expectations? That was the question Jim Cramer posed to his Mad Money viewers Tuesday. In reality, Cramer said the stock market is actually two different markets. The one that includes science and technology is roaring, while the one that includes practically everything else continues to crumble. 

On the optimistic side, some investors feel the U.S. will follow in China's footsteps, with a slow and rocky restart to the economy that eventually leads to a return to growth.

This makes sense for industries like healthcare, where a lifting on the moratorium on elective procedures could be a big win for companies like AbbVie  (ABBV) - Get AbbVie, Inc. Report. The selfie generation has been replaced overnight by the Zoom generation, Cramer said, and the demand for Botox will be huge once people can again see their doctors.

Even oil is poised to rebound, Cramer said, which is why he said traders can own Chevron  (CVX) - Get Chevron Corporation Report over the short term. 

Then there's technology, of course, where 5G wireless sent Skyworks Solutions  (SWKS) - Get Skyworks Solutions, Inc. Report higher. Cramer said he likes Apple  (AAPL) - Get Apple Inc. Report and all of its suppliers. Regeneron  (REGN) - Get Regeneron Pharmaceuticals, Inc. Report also rose 6% today as bioscience continues to power higher on American ingenuity. 

As for what not to buy, Cramer said he wouldn't trust the bank stocks or aerospace, travel, leisure or retail. In the battle between in-home and away-from-home entertainment, Cramer said he's betting on ActivisionBlizzard  (ATVI) - Get Activision Blizzard, Inc. Report over Walt Disney Co.  (DIS) - Get Walt Disney Company Report, which just suspended their dividend. 

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: Chegg

In his first "Executive Decision" segment, Cramer spoke with Dan Rosensweig, co-CEO of Chegg  (CHGG) - Get Chegg, Inc. Report, the digital learning platform with shares up 32% over the past month. 

Rosensweig said that Chegg has always believed that students would increasingly move online for their studies. He said online allows them to study different subjects in a high quality, affordable way, all on demand. As the pandemic got under way, that transition only accelerated.

Chegg is focused on the student, Rosensweig explained. Because they own the entire process, they can make classes more personal and more relevant to students and are able to respond quickly to changing market conditions. Chegg continually offers more services and more value for the same low price.

When asked how colleges will cope in the fall, Rosensweig said each school is preparing differently. He said classes need to resume, and that might mean online first and on campus later on in the year or it might mean a hybrid model with a limited number of students. Most students can't afford to take a gap year, he concluded, so classes must be made available.

Executive Decision: Everbridge

For his second "Executive Decision" segment, Cramer spoke with David Meridith, CEO of Everbridge  (EVBG) - Get Everbridge, Inc. Report, the critical communications service with first-quarter sales up 38% year-over-year. 

Meridith said Everbridge is supporting agencies and first responders all over the world with critical communications and other services like their newly-announced Return To Work solution. The service helps large and distributed companies manage the differing requirements across locations and provides employees with wellness communications, contact tracing and other critical notifications.

Everbridge is also working with the State of Vermont to help inform voters of new procedures for physical distancing and remote voting options. 

Cramer said that Everbridge is the right company for this moment in our history and is keeping people informed and safe.

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.

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Table for None, Please?

Much of the country is abuzz about the prospects of reopening our economy. But for many small business owners, the COVID-19 nightmare is still worsening.

From his perspective as the owner of a small restaurant, Cramer examined the Tennessee pledge -- guidelines set forth by that state's governor for how restaurants should reopen. After asking patrons at the door about their health and contact with those known to be sick, every guest must then have their temperature taken. After which, they may enter, only to be served by masked and gloved employees at tables at least six feet apart. Large parties over six will be refused and bars will remain closed. 

Cramer said he takes COVID-19 seriously and salutes Tennessee for putting health and safety first. But if New York were to adopt these rules it means removing seven of his 11 tables as well as his ability to make any profits at all. Will customers be willing to pay three times as much for a restaurant that's only a third full? He thinks not.

Executive Decision: Masimo

For his final "Executive Decision" segment, Cramer checked in Joe Kiani, chairman and CEO of medical device maker Masimo  (MASI) - Get Masimo Corporation Report, known for their pulse oximeters and remote patient monitoring platform. 

Kiani said everything Masimo has been doing over the past 31 years has been made for this moment. First, they developed state-of-the-art pulse oximeters that are accurate even when patients move around. Now, they've made those monitors wireless, so nurses and clinicians can monitor patients from safe distances without needed protective gear.

With the COVID-19 pandemic, many patients are being sent home for quarantine, making the need for reliable monitoring crucial. There are many cheap knock-offs available,  Kiani said, but none of them have Masimo's technology or reliability and can give you the same results as you'd get in a hospital. 

Shares of Masimo added 3.66% Tuesday to $234, and are at a new 52-week high.

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: 

Tandem Diabetes Care  (TNDM) - Get Tandem Diabetes Care, Inc. Report: "DexCom  (DXCM) - Get DexCom, Inc. Report is my favorite in this space, but this is a good one. " 

Scorpio Tankers  (STNG) - Get Scorpio Tankers Inc. Report: "You have to be very careful. People trade this stock, they don't own it for the long term." 

LPL Financial  (LPLA) - Get LPL Financial Holdings Inc. Report: "I'm not recommending any financials outside of fintech."

Carvana  (CVNA) - Get Carvana Co. Class A Report: "They need to start making money and their business model isn't clear to me." 

JPMorgan Chase  (JPM) - Get JPMorgan Chase & Co. Report: "If you're in it for the long-term, you can own that one for after the pandemic. " 

CoStar Group  (CSGP) - Get CoStar Group, Inc. Report: "I like Mastercard  (MA) - Get Mastercard Incorporated Class A Report more."

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