The Mask Ask: Cramer's 'Mad Money' Recap (Tuesday 7/21/20)

Jim Cramer says it's all about the mask. Even the president has switched sides on this issue that could help flatten the curve and help get our economy rolling again.
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Tuesday's stock market gains were all about the mask, Jim Cramer told his Mad Money viewers. Now that President Trump has seemingly done an about-face on wearing them, even going as far as calling them "patriotic," it just might be possible to flatten the curve and get COVID-19 under control, Cramer said.

That's why the "reopening the economy" stocks surged, while many names in the tech-heavy Nasdaq fell flat Tuesday. Cramer said a willingness to wear masks and the possibility for additional government stimulus was all it took to send the retailers, oil stocks and names like Walt Disney Co.  (DIS) - Get Report and Starbucks  (SBUX) - Get Report higher today. Even apparel stocks like VF Corp  (VFC) - Get Report and  (PVH) - Get Report PVH rallied on the news.

"Better late than never," Cramer concluded on the president's change of heart. Hopefully now, masks will be less of a political issue and people will realize that wearing them is how we get COVID-19 under control and fully reopen our economy.

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Big-Cap Tech Stocks Power Ahead

The big-cap tech names of Facebook  (FB) - Get Report, Apple  (AAPL) - Get Report, Amazon  (AMZN) - Get Report, Microsoft and Alphabet/Google are surging to levels Cramer previously called "insane." But does that mean we're destined to repeat 2001 all over again? Not so fast.

The phrase "this time is different" is a dubious one on Wall Street. But Cramer explained that unlike 1999, where most of the dot-com companies were figments of our collective imagination, the moves in these tech names are actually justified.

Apples makes the most popular phone on Earth and has a burgeoning service business. Microsoft owns the PC and is a major player in the cloud. Amazon has redefined the cloud, along with retail and most recently, advertising. Google owns search, video and online advertising, and Facebook owns, for better or worse, social and advertising. What do all of these companies have in common? There's nothing else like them.

Cramer said these tech giants are a rare source of growth in a growth-starved environment and they have deep pockets and don't need to issue additional shares to survive. That makes them a must-own for many ETFs and fund managers, who continue to buy shares at any price.

Make no mistake, these stocks can go down, Cramer cautioned, and they will come down eventually, but not long enough to put a permanent dent in their trillion-dollar valuations.

Executive Decision: Okta

In his first "Executive Decision" segment, Cramer spoke with Todd McKinnon, co-founder and CEO of cybersecurity company Okta  (OKTA) - Get Report. Shares of Okta are up 140% from their March lows, trading for 26 times sales.

McKinnon said in today's world, everyone is balancing the convenience of technology against staying safe and being secure online. Maintaining and securing your identity is a major piece of that puzzle. That's why when FedEx  (FDX) - Get Report needed to transition 80,000 employees around the globe to remote working, Okta was able to make it happen in just 36 hours.

It's not just corporate America that needs Okta's tools, McKinnon said. As our students plan to return to school, they too need secure access to their teachers, classes, coursework and assignments. If a university has 10,000 students that need distance learning, Okta is there to help.

Okta has over 8,000 happy customers, McKinnon said, and has many partnerships with companies like Microsoft  (MSFT) - Get Report, Workday  (WDAY) - Get Report, Salesforce.com  (CRM) - Get Report and Alphabet's Google  (GOOGL) - Get Report.

Identity protection is about a lot more than just how we work and learn, McKinnon concluded. He said our democracy itself rests on everyone getting the right to vote without interference, and in a safe and secure manner.

Executive Decision: Logitech

For his second "Executive Decision" segment, Cramer also spoke with Bracken Darrell, president and CEO of Logitech International  (LOGI) - Get Report, the computer peripheral maker that just posted a 30-cents-a-share earnings beat and raised its full-year forecast.

Darrell commented on the strong earnings from Best Buy  (BBY) - Get Report Tuesday. He said the company did a great job with their online store and he's not surprised earnings were even better as physical stores begin reopening.

Turning to Logitech, Darrell said there are multi-year trends in video everywhere, eSports and work from anywhere and the world isn't going back to the way things were. He said people want better video with better angles for their online meetings and that means webcams from Logitech. He said the education market will also be huge for Logitech as remote education ramps up for the fall.

Sales at Logitech were up 23% in the Americas and 33% in Asia, Darrell noted, and they can't wait for the return of school and sports later this year.

Executive Decision: Plug Power

For his final "Executive Decision" segment, Cramer checked in Andy Marsh, president and CEO of Plug Power  (PLUG) - Get Report, the fuel cell technology maker with shares that have more than doubled since May.

Marsh started off by saying that as the pandemic set in and consumers began buying everything online, 45% of internet retail flows through warehouses that use Plug Power's fuel cell forklifts and other products. He said their customers wanted a solution that was carbon neutral and Plug Power has delivered for companies like Amazon, Walmart  (WMT) - Get Report and others.

Marsh said he's a big fan of Tesla's  (TSLA) - Get Report Elon Musk, who's referred to fuel cells as "fool's cells," but noted that fuel cells are a tenth the size of lithium batteries and are lighter as well, making them a better solution for certain types of vehicles. If you're a package delivery company, would you rather carry batteries or packages, he asked?

Finally, when asked about Plug Power's wildly trading stock, Marsh said he's had many talks in recent weeks with institutional investors, which are not typical the speculators and day traders Plug Power's stock has typically attracted.

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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:

CommScope  (COMM) - Get Report: "I'm taking a pass on this stock."

Walgreens Boots Alliance  (WBA) - Get Report: "This is the first time they've reported a bad number and the stock didn't go down. That's your sign to buy."

Hanesbrands  (HBI) - Get Report: "Hanes is doing a lot better and I think the stock is a buy."

Everi  (EVRI) - Get Report: "I'm not fighting this one anymore. I'll bless it for speculation."

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At the time of publication, Cramer's Action Alerts PLUS had a position in DIS, SBUX, MSFT, CRM, GOOGL, FB, AAPL, AMZN.