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Case in point: All of the excitement surrounding Twitter's (TWTR) partnership with the National Football League. Turns out, only 243,000 viewers tuned in to watch this week's game on Twitter while over 15 million watched on their old-fashioned TVs. Twitter is overvalued on earnings, Cramer said, but undervalued on what it would be worth to an acquirer.
But Twitter is only one example. Home Depot (HD) delivered a terrific quarter but shares have fallen from $138 to $126 a share. Superior home builder Lennar (LEN) has fallen 3.5% on its earnings, while KB Homes (KBH) rose 3.1% on less-robust earnings.
But the most paradoxical move of the day was Tobira Therapeutics (TBRA) , which ended up over 720% thanks to a takeover bid from Allergan (AGN) for a drug to treat liver disease that just two months ago missed its clinical trial targets.
Executive Decision: Kristina Salen
For his "Executive Decision" segment, Cramer sat down with Kristina Salen, CFO of online handicraft marketplace Etsy (ETSY) , a stock that's rallied more the 50% over the past four months.
Salen said Etsy leverages technology to connect people for commerce, and her company's recent acquisition of Blackbird, a machine learning company, will allow it to accelerate even faster towards its goals.
With over 40 million unique products on the site, Salen said search and discovery are of the utmost importance. Blackbird can assist with everything from fixing spelling mistakes to making recommendations that just couldn't be made otherwise.
When asked about Etsy's remarkable growth, Salen explained Etsy has a seller-aligned business model and is laser focused on providing sellers with the services they need, from marketing their wares to fulfilling orders on time. Etsy's culture and mission help it attract more and more of the best employees around.
Cramer called Etsy a terrific story.
Cramer on Airlines and Autos
Morgan Stanley's case was simple, Cramer explained. The average stock trades at 18 times earnings. General Motors trades at six times earnings. The analysts are expecting the company to deliver two years of declining earnings. Morgan Stanley felt GM could at least deliver flat earnings.
Cramer said he tends to agree because the U.S. remains strong and GM sells more cars in China, which is recovering, than it does in the U.S. anyway.
As for the airlines, there are considerable headwinds, Cramer acknowledged, including self-induced competition, fears of terrorism and the Zika virus, economic declines in Latin America and a strong U.S. dollar. But does that mean the airlines are also in decline for the next two years?
Cramer believes the airlines will figure things out long before 2018.
Off the Charts
In the "Off the Charts" segment, Cramer checked in with colleague Bob Lang over the charts of the non-bank financials, mainly Visa (V) , MasterCard (MA) and PayPal (PYPL) , three stocks that don't need higher interest rates to make money.
Lang liked the daily chart of Visa, an Action Alerts PLUS holding. After making new all-time highs earlier this month, the stock has been consolidating its gains, but staying above its 20-day moving average. Visa's move higher was also made on strong volume, another bullish sign.
Lang also liked the chart of MasterCard, which displayed a bullish pennant pattern, also supported by its 20-day moving average and strong volume. For confirmation of the trend, Lang noted a strong Chaikin money flow.
Finally, Lang looked at PayPal, another Action Alerts PLUS holding. He noted the bullish inverse hand-and-shoulders pattern, along with a bullish MACD and Chaikin oscillator.
Cramer said he agreed with Lang and would be a buyer of all three of these stocks on any market-induced weakness.
Executive Decision: Bob Dutkowsky
In his second "Executive Decision" segment, Cramer sat down with Bob Dutkowsky, CEO of Tech Data (TECD) , a stock that soared 22% Monday after the company announced the acquisition of Avnet's (AVT) Technology Solutions business for $2.6 billion.
Dutkowsky said the acquisition is a perfect marriage of skills, talents and vendor relationships and is a great deal for shareholders of both companies. He noted the combined entity will lessen Tech Data's dependence on Europe, which currently accounts for 60% of sales, and gives his company a strong presence in the Asia-Pacific region.
Dutkowsky also said the deal sets Tech Data in position to compete in the so-called "third platform," the one that connects the cloud with social and mobile platforms and replaces both mainframes and client/server platforms.
Cramer applauded the merger as a terrific deal for both companies.
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