NEW YORK ( TheStreet) -- "Why didn't technology stocks take off today," a puzzled Jim Cramer asked the viewers of his "Mad Money" TV show Monday. With their huge revenue and earnings per share growth, tech stocks should have rallied big today, but instead, they were stuck in the mud, he said. Cramer said to truly understand what's going on in the tech world, one must take a look back at history. He said the world today is divided between Apple ( AAPL), a stock which Cramer owns for his charitable trust,
Portfolio Still Sweet"The C.A.N.D.I.E.S. are still sweet," Cramer told viewers, as he followed up on his high growth portfolio, which originally debuted on June 3. He said while the group has underperformed the S&P 500 since its inception, its long-term record is in tact, and he'd still be a buyer on any weakness. So what went wrong with the C.A.N.D.I.E.S. stocks? Cramer said nothing more than increased interest in cyclical, industrial stocks, which left the great secular growers in this group behind, albeit only for awhile. Cramer noted that all of the C.A.N.D.I.E.S. delivered great numbers, with Chipotle Mexican Grill ( CMG) growing revenue at a 20% clip, Apple growing its business on all fronts, Deckers ( DECK) delivering a 12 cent a share earnings beat, and intuitive Surgical ( ISRG) growing their revenues by 34%. That leaves only Netflix ( NFLX), said Cramer. "People are freaking out about Netflix," he said, thinking that the quarter was a disappointment, when in reality, it was anything but. Cramer said Netflix delivered a 9-cent a share earnings beat, on revenue growth of 27%, yet the bears mauled the stcok on a 7.5% decline in average revenue per subscriber. Cramer said what's important at Netflix is not the revenue per subscriber, it's that the company is growing subscribers at an increasing rate. Netflix now has more than 15 million subscribers, up 42% from a year ago. Netflix is still a buy, said Cramer, as are all of the C.A.N.D.I.E.S. stocks.
Focus on the U.S.In the "Executive Decision" segment, Cramer spoke with Jack Hartung, CFO of Chipotle Mexican Grill ( CMG), one of the stocks in Cramer's C.A.N.D.I.E.S. portfolio of high growth stocks. Chipotle recently posted earnings of $1.46 a share, seven cents better than expected, on a 20% boost in revenue and same-store sales that were up 8.7% for the quarter. Hartung said that Chipotle has been providing "food with integrity" for 10 years now, and is constantly working with suppliers to raise healthy food in a sustainable way. He said Chipotle is playing a part in bringing back the family farm, and is the largest restaurant chain to buy naturally raised meat and the largest buyer of locally growth produce. When asked about the company's lone store in Europe, Hartung said that Chipotle is beginning to build relationships in Europe, and is training a team of future leaders there, but, he noted, the company will grow when it's ready to grow, and not before. When asked about how to balance growth versus quality, Hartung said that Chipotle has a unique and strong culture towards great food and great people. He said this culture is a lost art amongst restaurants, but Chipotle works hard to maintain it. Hartung said "we won't grow at the expense of our culture." Finally, when asked whether Chipotle's Mexican theme can flourish in China, Hartung said that China is "not a question we're trying to answer now." He noted that even with 1,000 restaurants in the U.S., the company still has the opportunity to add thousands of new locations, and that is where iit'll be focused for the foreseeable future.