- the recent Apple pile-on;
- why your definition of "technology" should be broader than Apple and Microsoft; and
- why you should be in the market for shares of eBay.
Everyone's Taking Potshots at Apple Posted at 4:01 p.m. EDT on Friday, April 20. Can we go up without Apple ( AAPL)? I am beginning to think we can't. I am beginning to think that Apple has turned into a Spanish bond auction, for heaven's sake, and it has become the be-all and end-all of this market. I also believe that the parabolic move that got Apple up to the $600s was not sustainable and that what we have here is a $64 stock that has fallen to $57, and in falling that amount it has created a panic of epic proportions.
Rethink Your Definition of 'Tech Stock' Posted at 12:55 p.m. EDT on Friday, April 20. I am loving these technology company earnings. No, I am not talking about Microsoft ( MSFT), which was pretty darned good, or Salesforce.com ( CRM), which has been terrific. I am talking about the new technology companies, companies such as Under Armour ( UA), PPG Industries ( PPG), Honeywell ( HON) and Schlumberger ( SLB). These are the companies that are developing and innovating and taking share for doing so. Under Armour, the apparel company, had developed new forms of fiber that are lighter weight but tough and that athletes love. Its technology is what's driving sales, including the spectacular numbers it put up today. PPG has made technological breakthroughs in the coatings industry that have made that firm's coatings the envy of the world. We don't think that tech can play a role in something as mundane as paint, but it isn't just because PPG has been able to sell paint better than the other guys -- its coatings are regarded as so superior to the rest of the world's coatings that the Japanese and Chinese carmakers demand PPG's materials to be able to maintain higher price points than they would otherwise command. Honeywell's turbo technology has been a major difference-maker when it comes to fuel consumption. You ever wonder why cars get higher miles per gallon these days? A large part of it is because Honeywell makes turbo engines that save gasoline. Finally there's Schlumberger. When you listen to this company, you hear how we were able to find much more oil and gas than we thought our country had. Schlumberger is about scientists and engineers finding inexpensive and safe ways to get more fossil fuels out of the ground, and they are the best at it. Until people realize these are technology stocks, they will remain cheaper than they should be, and the stocks will continue to go higher because of their amazing innovations that are the envy of the world. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long SLB.
Sold on eBay Posted at 1:26 p.m. EDT on Thursday, April 19. We have witnessed a remarkable transformation with eBay ( EBAY). It has gone from being a slow-growing online marketplace to a fast-growing credit-card company. That's what happened with this quarter. That's why it went up so much. And that's why it isn't done. I have loved the credit-card division ever since I agreed to allow my kids to have credit cards and they chose PayPal. Just like I knew Apple ( AAPL) was a great stock in the $50s because my kids wanted more than one iPod and never wavered with every new product, I know that EBAY is worth much more than it is now. You see PayPal is Visa ( V). It is Mastercard ( MA). And it doesn't make as much money as those two behemoths on retail transactions, which means retailers have a predisposition to offer it. Plus, it works terrifically on mobile. And when you use PayPal, you don't have to enter all of your personal info into your mobile phone, which means you can't be hacked and they won't be able to hijack your identity. Oh, and one other added bonus: The core business, the old online flea market enterprise, is showing accelerating growth. That's what makes this $40 stock worth $50, as either an earnings story or a sum-of-the-parts breakup value. Hard to beat, even up here. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long AAPL.