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Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading.
LinkedIn (LNKD) and Tableau Software (DATA) : What should investors make of the carnage in LinkedIn and Tableau Software, which plunged 44% and 49%, respectively, on Friday? Cramer donned his crime scene investigation gear to determine the true cause of death.
Cramer said that LinkedIn was once a high-flying growth stock, beloved for its mobile, social and cloud aspects. But that all ended Friday when the company reported in-line earnings but slashed its guidance citing global economic concerns. That lead to the stock losing $11 billion of market cap in the blink of an eye.
The cause of death? Everyone assumed that LinkedIn was a secular grower and immune to global worries. Turns out it's not, and that means many investors need to reevaluate. Cramer said this stock cannot be touched until the company's credibility is restored, which will take at least another three months.
As for Tableau, this data analytics company was eerily similar, delivering OK earnings with weak guidance. That lead to shares getting cut in half on Friday and losing another 10% today. Tableau cited increased competition and customers becoming more cautious, two things you don't want to hear from a growth stock.
Cramer said the problem with Tableau is that even down here, the stock still trades at 53 times earnings, just below Salesforce.com (CRM - Get Report) at 55 times earnings. Salesforce is growing like a weed. Tableau stock, Cramer concluded, cannot be touched.
Verizon (VZ - Get Report) : Of all the CEOs Cramer interviewed last week in San Francisco, he said Verizon topped his opportunity list. This company offers both capital preservation with its dividend and capital appreciation with its many growth opportunities in wireless, FiOS and its recent acquisition of AOL. And let's not forget the possible acquisition of properties from Yahoo! (YHOO) that could augment growth even more.
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