If you're not willing to wear a mask for your health, do it for our economy, Jim Cramer urged his Mad Money viewers Wednesday. Because if we can't all agree to wear masks, then our only hope is a vaccine or additional stimulus, two things that are still a long way off.
Cramer said today's positive vaccine data from Moderna (MRNA) - Get Report is certainly encouraging news, but investors shouldn't be celebrating just yet. The company still needs multiple trials to make sure their vaccine works and to manage its side effects, after which it must then be able to manufacture, distribute and administer billions of doses. So while there may be a light at the end of the tunnel, there remains a dark chasm in front of us.
It's still far too early to be buying the airlines, cruise lines, casinos and restaurants, Cramer said. Late Wednesday, American Airlines (AAL) - Get Report indicated it may need to furlough up to 25,000 employees. But more important, there are millions of small businesses who will soon be losing their government assistance and cannot survive in a world with new social distancing requirements. Without additional government stimulus, Cramer said our banks could be headed for a wave of loan defaults.
That leaves us with masks, Cramer concluded. If everyone were to wear a mask for just a few weeks, we'd have COVID-19 under control and we could fully reopen our economy. That's why Cramer supports the recently-announced $1 million XPRIZE for a next-generation mask design that everyone will want to wear.
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Financials Are Tough to Own
Is it time to shoot the bank stocks and put them out of their misery? Today, Goldman Sachs (GS) - Get Report reported its second highest revenue ever, but the stock barely budged, closing up just 1.3%.
Cramer called Goldman's quarter "extraordinary" given COVID-19 and the many challenges the company faced this quarter. But the banks are getting no respect from Wall Street because of their exposure to COVID-19. Goldman set aside $1.59 billion to cover potential loan losses from the pandemic, creating financial risks that investors aren't willing to take.
That's why so many investors prefer financial tech stocks, like PayPal (PYPL) - Get Report or Visa (V) - Get Report, which have no loan risk. So while the stock of Wells Fargo WFC might be oversold and the stock of Goldman might represent tremendous value over the long run, the financials are a tough sector to own.
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Know Your IPO
In his "Know Your IPO" segment, Cramer said we've returned to the part of the IPO cycle where investment bankers are luring us back to the market with well-priced deals. Case in point: Tuesday's offering on Ncino (NCNO), which rocketed higher. But there's another recent IPO that caught Cramer's eye, insurance disruptor Lemonade (LMND) .
Lemonade came public two weeks ago at $29 a share and soared to $69. Shares currently trade above $74. Cramer said this company has digitized the entire insurance process and sells policies and processes claims all online, often in seconds. Lemonade currently focuses on just property and casualty insurance, however if it decides to expand into other areas, like auto policies, its addressable market would be enormous.
Lemonade was able to triple their revenues last year, but the company is still losing money. Shares trades at 26 times sales, which makes it pricey.
Cramer said while companies like Livongo Health (LVGO) - Get Report trade at 30 times sales, that company is almost profitable. Lemonade is not. Cramer would buy shares under $60, he said, but if the market doesn't give you that opportunity, he would move on.
Executive Decision: Biohaven Pharmaceuticals
Coric said he's very excited for their new "Take back today" campaign which aims to create an online community for migraine sufferers to help spread the word that there are better options available. He noted that Nurtec is the only quick-dissolve product on the market and many patients experience relief from their migraine symptoms in minutes.
While Nurtec is currently approved for acute migraine treatment, Biohaven has also filed with the FDA to use the drug as a preventative measure for migraines as well. Shares of Biohaven are up 127% in just the past three months.
Off the Tape: StockX
In his "Off The Tape" segment, Cramer spoke with Scott Cutler, CEO of the privately-held StockX, the online collectible marketplace that's facilitated $2.5 billion worth of products.
Cutler said that the pandemic has only accelerated the change in buying behaviors that they've seen all along. He said many people begin their shopping online and for their demographic, which is upper-income, Gen-Z consumers, platforms like StockX have become go-to destinations.
Cutler added that StockX has facilitated over 3.5 million pairs of Air Jordan sneakers since its inception, many of which have been since the recent Michael Jordan documentary reinvigorated demand for those items.
When asked about the future, Culter said StockX isn't slowing down, the company continues to hire and build and invest in its future.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Wednesday evening:
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At the time of publication, Cramer's Action Alerts PLUS had a position in GS.