Tech's Big Win: Cramer's 'Mad Money' Recap (Thursday 7/30/20)

Jim Cramer explains how U.S. tech giants have learned to thrive amid the pandemic and what that means for investors.
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When companies make money for their shareholders, their stocks deserve to go higher. 

Those were Jim Cramer's thoughts after seeing the action in Apple  (AAPL) - Get Report, Amazon  (AMZN) - Get Report, Facebook  (FB) - Get Report and Alphabet  (GOOGL) - Get Report this quarter. 

Cramer told his Mad Money viewers Thursday that while the pandemic has been horrible for most Americans, our nation's tech companies have learned to thrive in it.

The old economy's loss is the new economy's gain, Cramer told viewers, and the pandemic has pulled many companies' digital transformation plans forward by three to five years. That means tech companies are making fortunes and deserve every bit of their success.

Cramer said Amazon delivered $89 billion in revenues when analysts were only looking for $81 billion. Apple gave shareholders almost $60 billion in revenues and a 4:1 stock split. Facebook continues to see strong growth in its small business initiatives. Only Google seemed to disappoint, Cramer said, but he noted that Google is so non-promotional that they're almost anti-promotional on their conference calls.

These tech giants have learned how to thrive in the harshest of conditions, Cramer concluded. It makes sense for their stocks to head higher.

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: Utz

In his first "Executive Decision" segment, Cramer spoke with Dylan Lissette, CEO of Utz Quality Foods, and Roger Deromedi, co-founder of Collier Creek Holdings, which will be coming together in a reverse merger later this quarter.

Lissette said that Utz is a 100 year old, family-owned company that began in 1921. They're now looking forward to their next century by coming together with Collier as a publicly traded company.

Deromedi, who hails from Pinnacle Foods, which was acquired by ConAgra  (CAG) - Get Report in 2018, said they're looking to use what they learned at Pinnacle to create the next generation of snack food company. He said the Utz family of brands will just be the beginning of this next chapter.

When asked why salty snacks are such a great category, Lissette said during the pandemic, people just want comfort food and that means returning to brands they know and trust. He said their home in Hanover, Pa., also was home to the Snyder's of Hanover brand of snack foods and is a tribute to the people, heritage and work ethic of the area. 

Investors can currently buy shares of Collier under the ticker  (CCH) - Get Report. When the transaction closes, the ticker will change to UTZ and the company will be called Utz thereafter.

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Executive Decision: Keurig Dr. Pepper

For his second "Executive Decision" segment, Cramer also spoke with Bob Gamgort, chairman and CEO of Keurig Dr. Pepper  (KDP) - Get Report, the beverage maker that reported strong earnings, but saw its shares fall 1.5% after the close.

Gamgort said sales continue to be strong at Keurig Dr. Pepper. Sales of Dr. Pepper have grown 17 quarters in a row, he noted, while Canada Dry has seen growth every year for the past 13 years. E-commerce has also become an important distribution channel, and now accounts for 10% of overall sales.

Gamgort was also bullish on their recent partnership with Polar brand seltzer. He called their agreement a "perfect match" of brand and distribution capabilities.

Keurig is also still innovating with their new "Duo" line of coffee makers that can make both individual cups as well as pots of coffee. Keurig is also committed to sustainability and their K-cups will be 100% recyclable by the end of this year.

Cramer called Keurig Dr. Pepper "a winner."

Executive Decision: Taylor Morrison Homes

For his final "Executive Decision" segment, Cramer checked in Sheryl Palmer, CEO of home builder Taylor Morrison Homes  (TMHC) - Get Report, which posted a 21-cents-a-share earnings beat and saw its shares sink 3.3%.

Palmer said they've seen a lot of changes over the past 20 weeks at Taylor Morrison. She was what started as a slow trickle has now become a growing trend of urban consumers looking for more space for home offices, aging parents, and a better lifestyle. She said enhanced technology is allowing people to work from anywhere and consumers are leaving dense urban areas.

Home buyers are also looking for healthy home features, Palmer said, which is why starting on Aug. 1, Taylor Morrison is making enhanced clean air, clean water and chemical-free processes standard on all of their homes. She said these features will soon be expected by all home buyers.

Taylor Morrison has seen a 94% increase in sales over last year.

Appetite for Yum

In his No-Huddle Offense segment, Cramer said the restaurant apocalypse is upon us. That was his takeaway after listening to the Yum Brands  (YUM) - Get Report conference call this quarter.

Cramer explained that on the call, Yum noted that Pizza Hut, its largest division, saw same store sales increase 1%, even though their dining rooms were closed. Why does this matter? Cramer said Pizza Hut, along with Taco Bell and KFC have the scale to transition from dine-in to carry out and drive-thru, but independent restaurants don't. They're simply not built to compete in a takeout and delivery world.

Cramer said small restaurants can only seat half as many customers as they used to. Their bars remain closed. Their food doesn't travel well. And any margins they would make are now going to their delivery service. Yet their costs, labor and overhead all remain the same.

Cramer said it's clear that sit-down restaurants can't survive in a COVID-19 world, which is why we need stimulus or a vaccine to save them.

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 Thursday evening:

Vaxart  (VXRT) - Get Report: "I don't like the insider selling in that stock."

Dynatrace  (DT) - Get Report: "That's been a real winner and they're inexpensive. "

Rosetta Stone  (RST) - Get Report: "I think this is a good household brand stock."

Blink Charging  (BLNK) - Get Report: "I can't recommend it. I like Tesla  (TSLA) - Get Report. I'll stick with that."

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