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Cramer said the fears that the markets are replaying Y2K all over again are starting to take hold, especially with Twitter (TWTR) barely beating the estimates, Panera Bread (PNRA) lowering guidance and Ebay (EBAY) just flat out missing their numbers. But that doesn't mean its time to panic, he continued.
Cramer explained that the tech bubble collapse in 2001 was fueled by many things, including hedge funds piling into momentum names, only to pile out when the growth stopped, the market leaders playing fast and loose with their newfound capital to make stupid acquisitions and a flood of "me too" IPOs that overwhelmed demand. That was compounded by insiders selling at any cost, truly proving to everyone that their "red hot" companies were indeed overvalued.
Are those same things happening today? Well, yes, to some degree, Cramer admitted. But as you'll recall, only the tech-heavy NASDAQ plummeted in 2001. The broader S&P 500 stayed alive for a full year after the dot com bubble burst, which is why he continues to recommend scaling out of the momentum names and into safer stocks like old tech, food and retail names, those that pay good dividends and should be immune to the shift away from momentum.
Executive Decision: Ben Baldanza, Spirit Airlines
For his "Executive Decision" segment, Cramer once again spoke with Ben Baldanza, president and CEO of Spirit Airlines (SAVE), which today delivered a penny-a-share earnings beat, only to see its shares fall by 2.9%. Shares of Spirit are up 30% since Cramer last spoke with Baldanza in November.
Baldanza said that Spirit still had a good quarter, despite having to cancel four times as many flights as it did last year. He said his company is still on target to grow 15% to 20% a year, which is a good formula for stock appreciation.
When asked about Spirit's loyal customer base, Baldanza explained that customers love flying Spirit because of its low-cost approach, but that no-frills attitude does need to be explained to new customers as they expand and grow.
Turning to the broader airline industry, Baldanza said that in 2008, the industry lost over $10 billion, but since then, it's restructured itself to make money with higher fuel prices. That means fewer players and higher fares, he admitted, but overall the airline industry is far more stable than its been in a long time.
Cramer said the markets are rewarding companies that make money, and Spirit Airlines is making its shareholders a lot of money.
Executive Decision: Kevin Plank, Under Armour
In his second "Executive Decision" segment, Cramer went on location in Soho, New York City to sit down with Kevin Plank, founder, chairman and CEO of Under Armour (UA) at the company's newest store location.
Plank explained that Under Armour has always been a David vs. Goliath story, but where once their competition was 20-times their size, today they're just 10-times their size. He said that the fitness apparel market is not a zero-sum game, there is lots of room for competition and Under Armour is not a "one trick pony."
Under Armour's goal is to get more people physical and active and to create more athletes, Plank continued. He said in today's world, we know more about our car than what's going on with our own bodies. That's why Under Armour's connected fitness initiatives aim to arm people with the data and the science to tell them how active they are, how well they're sleeping and what their heart rates are.
When asked about the company's growth, Plank said that Under Armour is not just spending for the sake of spending, they're growing organically on many fronts, including women's apparel, golf apparel and footwear, as well as internationally. There are avenues for many years of growth ahead, Plank said.
Executive Decision: Sandy Cutler, Eaton
In still another "Executive Decision" segment, Cramer spoke with Sandy Cutler, chairman and CEO of Eaton (ETN), a stock which Cramer owns for his charitable trust, Action Alerts PLUS. Eaton just reported a penny-a-share earnings beat on in-line revenues.
Cutler started off by saying that Eaton saw their strongest quarter in over two years, with 4.5% growth and operating earnings up 21%. He said markets are increasing as they expected and April is proving to be especially strong as many first quarter orders are finally being placed.
Cutler also explained that as a result of their acquisition of Cooper Industries, Eaton is now headquartered in Ireland, making it able to take advantage of the many tax advantages there.
When asked whether being in Ireland means another European acquisition may be in the works, Cutler said after putting through a 17% dividend boost in February and agreeing to pay off $2.1 billion in debts, Eaton will likely be out of the acquisition market until the end of 2015 when it fully integrates the 30,000 Cooper Industries employees.
Cramer said that investors need to do their homework to fully understand their earnings before they pull they the trigger on Eaton.
Cramer was bearish on Middleby (MIDD).
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt