Investors are too eager to buy into this market weakness, Jim Cramer cautioned his Mad Money viewers Monday. Many investors seem willing to buy at all costs after Friday's selloff -- but that could be a risky move given how the coronavirus is still not contained.
Cramer said he doesn't advise selling everything, as there's no systemic risk the our markets, like there was in the financial crisis in 2008. But we still don't know how far the coronavirus will spread or how many businesses will be affected or for how long. Until we have those details, the smart move would be to raise cash so you'll be ready to buy at lower levels.
When that time comes and all of the bad news is known, Cramer said, investors can start buying stocks that are not economically sensitive. Stocks like Tesla (TSLA) - Get Report rallied 19.8% Monday, as electric cars and solar panels are continually proving the short sellers wrong. But Cramer cautioned that it's even too early to buy Apple (AAPL) - Get Report, as the company could see supply chain disruptions and continued store closures in China.
If you're tempted to buy, Cramer said to wait a little longer until we know just how far the impacts of this virus will spread.
Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve and the coronavirus. 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.
Changing With the Times
Cramer's long been a proponent of oil and natural gas. He supported America becoming energy independent, supported fracking and rallied behind natural gas as a bridge fuel for a more sustainable future. He even once broadcast from an offshore oil rig in the Gulf of Mexico. However, times have changed.
When Larry Fink of BlackRock (BLK) - Get Report announced that funds will now consider sustainability as an investment criteria, it was a game changer, Cramer said. BlackRock has $7 trillion under management and Fink is not alone in wanting to invest in "impact per share" rather than just "profits per share."
Cramer recently sat down with Sataya Nadella, CEO of Microsoft (MSFT) - Get Report, which has pledged to go beyond carbon neutral and into carbon negative. Microsoft has also created a $1 billion fund to advance sustainability.
Cramer reminded viewers that Mad Money isn't about making friends, it's about making money. Oil and gas stocks are quickly becoming a wasting asset that no one wants, he said, which is why Exxon was downgraded to an outright sell.
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.
What to Watch: Internet and Streaming
As streaming video on the Internet continues to gain momentum, so both Comcast (CMCSA) - Get Report and AT&T (T) - Get Report. But that's OK, Cramer said, because Comcast makes more money on high-speed Internet and AT&T now has Time Warner to bolster its bottom line.
But when it comes to cord-cutting, the big winner continues to be Roku (ROKU) - Get Report, which saw its shares surge 5.4% Monday after reporting another strong quarter that included 50% revenue growth. Some investors had feared that Roku's growth peaked last year, but Cramer noted that streaming is still a growth industry and Roku continues to be a leader, even with shares up 182% for the year.
Investors looking for a more enticing streaming play should also consider The Trade Desk (TTD) - Get Report, a platform that helps advertisers place ads on all of that streaming media. Shares of Trade Desk are up 89% over the past year and Cramer said the stock is not done heading higher.
Executive Decision: Zoom Video
For his "Executive Decision" segment, Cramer spoke with Eric Yuan, founder and CEO of Zoom Video Communications (ZM) - Get Report, the video meetings provider with shares up 14.9% Monday on another strong quarterly report.
Yuan said that the trend of people working from home continues and more and more companies are looking for a reliable, secure way to meet with their customers, suppliers and employees and that's Zoom.
When asked about competition, Yuan noted that the video conferencing market is big enough for all players, big and small, but Zoom is ready to compete. He noted that Zoom started as a small and mid-size business solution, but the company is now winning deals at Fortune 100 companies.
Turning to the topic of the coronavirus, Yuan said that Zoom has seen record usage in the past few weeks, partially because people are staying home.
Ultimately, employees need to be able to work no matter where they are, Yuan concluded, and being able to conduct meetings from anywhere is what Zoom is about, he said.
Doctor on Demand
In a special interview, Cramer spoke with Hill Ferguson, CEO of Doctor on Demand to learn more about this year's flu season and how the coronavirus is affecting patients' mindset.
Doctor on Demand operates an online platform that enables patients to connect with doctors from computers, smart phones and tablets. Its platform enables audio or video chat with physicians on various medical issues.
Ferguson said this year is proving to be a very active flu season, with over 19 million people in the U.S. affected, 183,000 hospitalized and, so far, more than 10,000 deaths.
While coronavirus is on the minds of patient, he said, there have only been about 17,000 cases identified of this new coronavirus, and about 400 deaths, all but one of which has been in China.
Ferguson said Doctor On Demand operates in all 50 states and is available 24/7 for patients. He said if people think they have the flu, they should see a doctor early and can receive antiviral medication. People are busy, he said, so why wait a month to see your physician in person when you can see a doctor online in less than five minutes?
When asked about the healthcare system in America, Ferguson said we have a great sick-care system, but we still fall short in preventative care, and prompt access to medical services, especially in areas of mental health, is crucial.
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. MSFT, CMCSA.