Don't let the headlines tell you why a stock is down, do your own homework, Jim Cramer told his Mad Money viewers Thursday.
Too often the headlines are just plain wrong, Cramer explained, as analysts and reporters scramble to make sense of a mountain of earnings data in just a few minutes. That's why doing even a little of your own homework can put you ahead of the pack.
Some recent examples include Cisco Systems (CSCO) , which was reported to have had "light" revenues this quarter, sending shares sharply lower. Turns out, those revenues were only deferred and the stock rallied 2.3% today as cooler heads prevailed.
It was a similar situation with Pepsico (PEP) , which rallied 1.3% as investors realized the company's problems were actually caused by a strong U.S. dollar.
3M (MMM) also saw a snap-back rally once that company explained that weakness was caused by a single retailer, not systemic problems.
Whether it's Chipotle Mexican Grill (CMG) or McDonalds (MCD) , Cramer said it always pays to read the reports and listen to the conference calls yourself to determine whether an earnings sell-off is an opportunity in disguise.
Meanwhile, on Real Money, Cramer bemoans the never-ending battle with stupidity. In this market, he says, information's not being valued correctly. Check out Cramer's strategies with a free trial subscription to Real Money.
Executive Decision: Twitter
For his "Executive Decision" segment, Cramer sat down with Anthony Noto, COO of Twitter (TWTR) , which has seen its shares sink by 17% since reporting earnings last week.
Noto said that Twitter remains a hugely popular service with tens of billions of tweets across the globe in every interest area imaginable. The company's new live event platform delivers a younger, mobile and global audience to advertisers.
When asked about those live events, Noto explained that for events like the NFL, Twitter can deliver a unique experience, combining the live video feed with the best tweets and commentary. Twitter's live coverage of the Grammys saw an audience of more than 5.1 million.
Turning to the topic of revenue growth, Noto explained that Twitter has lots of options available to it for monetization, but right now the company remains focused on advertising.
Get In, Go For a Spin
Are driverless cars really the future? Cramer said he was skeptical until he took a ride in a Waymo vehicle yesterday. "The future is now," Cramer proclaimed, noting that Alphabet's (GOOGL) driverless car division really is that impressive.
The fact is that humans are terrible drivers, he noted, with nearly 94% of the 40,000 auto fatalities last year stemming from human error. Cramer said his ride yesterday, however, obeyed all the speed limits, took its time and minded its blind spots, the ultimate in defensive driving.
Sure, there still are many kinks to be worked out, he admitted, but the future is clearly within our grasp and it will be a much safer one than we have today.
Executive Decision: Cisco Systems
In his second "Executive Decision" segment, Cramer sat down with Chuck Robbins, CEO of Cisco Systems, which delivered quarterly results that saw both a top and bottom line beat but also a rise in deferred revenues as the company morphs from a hardware vendor into more of a software and services provider.
Robbins called out Cisco's 51% increase in subscriptions as one of the high points of the quarter, saying that his company's strategy is working and more customers are looking for cloud and security services. He said that Cisco has two levels of innovation, both organic and via acquisition, with AppDynamics being one of the stand outs.
When asked about the Trump administration's tax reforms, Robbins said that he feels tax reform will get done this year and overall he sees a good business environment in the U.S., more so than in Europe, where there is more uncertainty.
The Lightning Round
In the Lightning Round, Cramer was bullish on Potash (POT) , AGCO (AGCO) , Mosaic (MOS) , Micron Technology (MU) , Randgold Resources (GOLD) , SPDR Gold Shares (GLD) , Principal Financial Group (PFG) , Constellation Brands (STZ) , Shell Midstream Partners (SHLX) and Magellan Midstream Partners (MMP) .
Executive Decision: Twilio
In his final "Executive Decision" segment, Cramer spoke with Jeff Lawson, co-founder, chairman and CEO of Twilio (TWLO) , the cloud communications provider likely powering many of the apps you use every day.
Lawson said that Twilio's growth strategy has been to target developers, and put the Twilio platform into their tool belts for the next time they need communications for their websites or applications.
For customers like Uber, Lawson explained that Twilio provides a layer of security between drivers and riders, while at Nordstrom (JWN) , Twilio helps facilitate communications between customers and associates while also integrating with the company's other systems.
When asked about customer loyalty, Lawson said that Twilio is deeply embedded in customers' apps and they have the scale and the interconnections to make sure messages arrive quickly and seamlessly.
Cramer said that shares of Twilio have finally settled into a level where the stock is buy.
Cramer and the AAP team are taking the temperature of their stocks and trimming a little of the hot ones: Costco (COST) and Walgreens (WBA) . Find out what they are telling their investment club members with a free trial subscription to Action Alerts PLUS.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.