When you buy a stock, you are betting on the future, Jim Cramer told his Mad Money viewers on Friday. This is why it is so important to understand what the future will look like. It’s also why Cramer spent the entire week in San Francisco, interviewing CEOs of tech companies to find out more about what’s to come.
Many companies are unaffected by supply chain issues, and next week’s game plan is full of them. Monday we will hear from Zoom Video (ZM) – Get the Zoom Video Communications (ZM) report, the darling of the pandemic that has seen its shares drop in recent times, what Cramer said is a buying opportunity.
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On Tuesday, Cramer was all about the bulls. He expects big profits from three big retailers, Dick’s Sporting Goods (DKS) – Get the report from Dick’s Sporting Goods, Inc., Best buy (BBY) – Get the report from Best Buy Co., Inc. and dollar tree (DLTR) – Get the Dollar Tree, Inc. report. Cramer also expects good news from Analog Devices (ADI) – Get the report from Analog Devices, Inc. and Dell (DELL) – Get Dell Technologies Inc Class C Report.
Then on Wednesday we’ll have the last durable goods orders, and Cramer is hoping for some easing on the inflation front.
Thanksgiving Day and Friday are the traditional start to the holiday shopping season.
Executive decision: Palo Alto Networks
In his first segment “Executive Decision”, Cramer met Nikesh Arora, President and CEO of Palo Alto Networks (PANW) – Get the report from Palo Alto Networks, Inc., the cybersecurity giant with shares which rose another 2% during Friday’s session.
Arora explained that with everyone migrating to the cloud, it was vital for Palo Alto to have a world-class cloud security platform and that’s what she worked hard to build. Palo Alto is now the largest cloud security provider.
But today, security involves more than just the cloud. With so many people working from home, Palo Alto must protect people everywhere. That’s why it expanded to home security with routers with built-in security.
Arora noted that this was her company’s best first quarter in five years and just proves companies are finally starting to take security seriously. Research shows that when a hacker discovers a vulnerability, you have up to five hours to fix and protect yourself. Palo Alto allows businesses to move with that kind of speed.
Cyber security is the biggest risk businesses face in today’s world, Arora concluded, and that’s why boards need to be well aware of threats and solutions.
Executive decision: Nvidia
For its second “Executive Decision” segment, Cramer made a pilgrimage to the headquarters of chipmaker Nvidia (NVDA) – Get the NVIDIA Corporation report, to talk with Founder, Chairman and CEO Jensen Huang about what’s happening in the future of semiconductors. Nvidia shares have climbed 153% this year.
Nvidia is a leader in games, data center and professional visualization, Huang said, and supplies the chips to simulate graphics, physics and even intelligence. He explained that in today’s world, companies want to simulate everything from the performance of their product to how best to route packages or deploy resources. Simulating in Nvidia’s omniverse is faster and much cheaper than performing real-world experiments, he added.
Regarding artificial intelligence, Huang said that Nvidia is making great strides. The latest AIs not only understand words and phrases, but also the intent of what you are asking, depending on where you are and what is going on around you. It knows the difference between a river bank and a money bank, for example, and if you’re in your car and ask to “turn up the volume,” the AI will know if you mean the heat or the music.
Huang added that simulations are also great for cleaning up the planet by removing waste. Waste comes in all forms, he said, from wasted energy on the power grid, to wasted radio waves in the air connecting your devices, to physical waste in factories. Simulating better ways to do all of these things will change the world.
Executive decision: Levi Strauss
In his next segment “Executive Decision”, Cramer returned with Chip Bergh, President and CEO of Levi Strauss (LEVI) – Get the Class A report from Levi Strauss & Co., the clothing maker with shares up 38% so far this year.
Bergh said there was a lot of pent-up demand for denim thanks to the pandemic. Up to 40% of Americans have a different waist size because they’re at home, and that’s why retailers are selling a lot of Levis right now.
Bergh also spoke about Levi’s sustainability efforts, which revolve around climate, consumption, and community. He said the company continues to strive to be better stewards of the environment, using less water and energy, and emitting less carbon than ever before.
Regarding consumption, Bergh said consumers buy twice as many clothes as they did 15 years ago and also throw those clothes twice as fast. That’s why Levi is focused on “buy better, wear longer” to help reduce waste.
Finally, Bergh said the community starts with their employees, where the company has worked to help employees and their families throughout the pandemic.
Executive decision: Williams-Sonoma
For her final “Executive Decision” segment of the week, Cramer met Laura Alber, CEO of Williams-Sonoma (WSM) – Get the Williams-Sonoma, Inc. report, the home goods retailer which just posted strong profits, including a 17% increase in same-store sales.
Alber said the holidays were almost forgotten last year, but this year people are eager to return to decorating, gifting and socializing. They want to see the products in store while still having the ability to shop online, which is why Williams-Sonoma offers both. Now that many people are working from home, they care more about their homes, she said. And while they can also have delivery more often, they also cook more at home.
Williams-Sonoma takes their online shopping experience to a whole new level with features like augmented reality. Alber noted that the acquisition of Outward four years ago allows it to digitally render all of its products into photos of a home so customers can see exactly what the products will look like.
Alber added that since Williams-Sonoma designs and manufactures most of its products, it is close to the production process and has made strides towards sustainability.
Here’s what Cramer had to say about some of the actions callers came up with during the “Mad Money Lightning Round” on Friday night:
Office metal (DM) – Get the DESKTOP METAL, INC. Report.: “It’s very speculative, but I like it.”
Digital marathon (MARA) – Get the report from MARATHON DIGITAL HOLDINGS INC: “I would rather you were content with crypto.”
AerSale ASLE: “What’s wrong with Boeing (BA) – Get the Boeing Company Report? This is the opportunity. “
Joby Aviation (USE) – Get the Joby Aviation report: “If you want a SPAC in this area, go for Blade Air Mobility BLDE.”
CuriosityStream CURI: “These entertainment companies are all down. I stay with Walt Disney Co. (SAY) – Get the Walt Disney Company Report. “
Vuzix (VUZI) – Get the report from Vuzix Corporation: “It’s speculative. I’ll only bless this for speculation.”
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