There's a market rotation afoot, Jim Cramer told his Mad Money viewers Monday. Investors are reevaluating how much they're willing to pay for growth today and for a company's growth in the future. Too much growth is being panned, while plans for improving your growth are being handsomely rewarded.
Today we learned that activist investors have taken a stake in AT&T (T) - Get Report with the hopes of spurring growth at the telco giant. Shares responded by rising 1.4% by the close. Cramer said what's most interesting is that the activists did not ask for seats on the AT&T's board of directors, nor for a change in leadership. Instead, they asked for a change in strategy to help reignite growth. He called AT&T a buy a current levels.
Then there's the ecommerce platform Shopify (SHOP) - Get Report , which had growth, but little in the way of earnings. Shares fell another 5.7% today as investors remained unconvinced that Shopify's growth rate is sustainable and will ultimately translate into earnings. Investors have also become wary of Crowdstrike (CRWD) - Get Report , the high-flying IPO that has plunged 17.4% in just over a week as expectations for the company's growth waned.
Cramer said he remains a fan of the proven growth winners, companies like Salesforce.com (CRM) - Get Report and OKTA (OKTA) - Get Report , which have the long-term momentum to overcome the short-term rotation.
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Executive Decision: Zoom Video
For his "Executive Decision" segment, Cramer spoke for the first time with Eric Yuan, founder and CEO of Zoom Video Communications (ZM) - Get Report , the video conferencing company with shares that rose 8% on Friday and another 8% Monday, but still remain down 16% over the past month.
Yuan said that video remains the future of communications and customers, especially younger ones, want to use the best technologies available. That's why Zoom has a diverse customer base that includes everyone from banks to Uber (UBER) - Get Report , including partners like Verizon (VZ) - Get Report .
Yuan added that video is an important part of collaboration for every company, as it improves engagement between employees and with customers. That's the long-term value of Zoom Video.
Cramer reiterated his buy on Zoom Video.
Executive Decision: Dollar Tree
In his second "Executive Decision" segment, Cramer sat down with Gary Philbin, president and CEO of Dollar Tree (DLTR) - Get Report , the discount retail chain with shares that are up 20.8% over the past month.
Philbin explained that they remain hard at work renovating their Family Dollar locations and expect to complete more than 1,000 renovations by the end of 2019. But it's not just those locations that are performing well, he said. All of the company's 15,000 stores across the U.S. and Canada are seeing growth.
When asked what customers can expect from their renovated Family Dollar locations, Philbin said it starts with a great selection of impulse items right up front and continues with a better selection of household staples, an expanded party section and great Halloween items which are just beginning to arrive. Customers will be surprised at both their selection and pricing.
Turning to the topic of tariffs, Philbin said Dollar Tree continues to mitigate the effects of tariffs by sourcing throughout all of Asia and moving items out of China where they can. The company has always been disciplined with their sourcing, which means they don't need to remove value to stay profitable. The company's private label brands are one way they're able to continue providing the value their customers expect.
Executive Decision: Alteryx
In his final "Executive Decision" segment, Cramer also checked in with Dean Stoecker, CEO of Alteryx (AYX) - Get Report , the cloud analytics software provider that's seen its shares plunge from $147 to just $120 a share in recent days as investors flee fast-growing stocks.
Stoecker said Alteryx is bringing the thrill of problem solving back to business users of all kinds by offering both code-free and code-friendly solutions that allow users of all skill levels to perform their own analytics. He said for many, the spreadsheet still remains the preferred tool for analyzing data, but in today's world, you simply cannot process millions or hundreds of millions of rows of data with a spreadsheet, which is why Alteryx is so valuable.
And it's not just companies using Alteryx, Stoecker added. Sports teams in the NFL are also using Alteryx to provide a better experience for football fans, while casinos use their predictive modeling tools to help build more engaging experiences for their patrons.
When asked about the falling stock price, Stoecker said he's not worried, as the company's long-term outlook remains strong.
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Spotlight on the Chinese Economy
In his "No-Huddle Offense" segment, Cramer cautioned investors not to get too excited about China's slowing exports, because the Chinese consumer economy is still quite strong. He said while you can never trust the Chinese economic data directly, there are plenty of American companies that have told us things are great in China.
Companies like Apple (AAPL) - Get Report , Lululemon Athletica (LULU) - Get Report and Starbucks (SBUX) - Get Report , all continue to see growth in China, despite the trade war. And while shares of Caterpillar (CAT) - Get Report flounder, that's not indicative of the rest of the Chinese economy.
America has the strength to win the trade war, Cramer concluded, but it doesn't appear to be happening just yet.
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At the time of publication, Cramer's Action Alerts PLUS had a position in CRM, AAPL, CAT.