Wall Street spent weeks worrying about a Russian invasion of Ukraine, and during that time, stocks drifted lower, Jim Cramer told his Mad Money viewers Friday. Now that the moment has come, the market is rallying. But Cramer warned that next week, the market’s focus will shift back to inflation, and investors should be prepared to give up some of their recent gains.
Cramer’s game plan for next week begins on Monday with earnings from HP (HPQ) – Get HP Inc. Report, Workday (WDAY) – Get Workday, Inc. Class A Report and Zoom Video (ZM) – Get Zoom Video Communications, Inc. Class A Report, but Cramer was bearish on all three. HP will likely see supply chain issues. Workday is expensive. And Zoom Video needs new business to spur growth.
Next, on Tuesday, we’ll hear from Target (TGT) – Get Target Corporation Report, Domino’s Pizza (DPZ) – Get Domino’s Pizza, Inc. Report and Salesforce.com (CRM) – Get salesforce.com, inc. Report. Cramer was cautiously optimistic on these three companies, noting that Target is in a far superior position to Kohl’s (KSS) – Get Kohl’s Corporation Report, which also reports on Tuesday.
Wednesday will be a mixed bag as the Federal Reserve meets. Cramer was bullish on Snowflake (SNOW) – Get Snowflake, Inc. Class A Report and neutral on Okta OKTA.
Fed chair Jay Powell will be speaking on Thursday, again overshadowing earnings, but that didn’t deter Cramer from recommending Costco (COST) – Get Costco Wholesale Corporation Report.
Finally, on Friday we’ll get more economic data in the form of the latest unemployment report. We’ll also get earnings from Devon Energy (DVN) – Get Devon Energy Corporation Report, Cramer’s favorite oil producer.
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Executive Decision: Zscaler
In his first “Executive Decision” segment, Cramer spoke with Jay Chaudhry, chairman and CEO of Zscaler (ZS) – Get Zscaler, Inc. Report the cybersecurity company. Shares of Zscaler trade for a lofty 36 times sales.
Chaudhry explained that momentum is still pulling in Zscaler’s favor and they’re still keeping their customers safe from attacks. The company just crossed $1 billion in annual recurring revenue and Chaudhry sees a path to $5 billion.
Chaudhry explained that while all segments of their business are growing, their federal government sales came in light. That’s because the government is operating on stop-gap funding, he explained, and without a budget, no new projects can begin.
Shares were volatile this week, rising 10% Thursday ahead of earnings, only to plunge 15.7% Friday following the report.
When asked about the negative reaction to their earnings, Chaudhry said he manages the company for the long term and it’s shortsighted to look at any given quarter in a vacuum. Cramer agreed.
Executive Decision: Barrick Gold
For his second “Executive Decision” segment, Cramer also spoke with Dr. Mark Bristow, president and CEO of Barrick Gold (GOLD) – Get Barrick Gold Corporation Report, the gold miner with shares up 19% for the year.
Cramer noted that as global tensions rose, cryptocurrencies, which are often touted as the “new” gold, fell. But what didn’t fall was actual gold. Bristow said there is no substitute for investing in gold. He said no one knows how many Bitcoins there are or how much they’re worth, but we know exactly how much gold is being mined.
Bristow commented on a host of topics. He explained that while Barrick owns five of the top 10 gold mines in the world, they now aim to do the same with copper, which continues to soar in price. He also explained that their dividend policy is pegged to the price of gold, so investors will always know what their dividend will be.
Barrick continues their commitment to sustainable and responsible mining around the globe, Bristow said.
Executive Decision: Suntory
In his final interview, Cramer spoke with Takeshi Niinami, president and CEO of Suntory Holdings, the spirits maker that includes Jim Beam among its portfolio of brands.
Niinami said the success of Jim Beam around the globe stems from two things. First, improved quality, which is a result of an “east meets west” strategy that includes a collaboration of their home country, Japan, and Kentucky, where Jim Beam was founded. Second, Suntory is also investing in the brand to expand their customer base.
Suntory is also seeing success from their ready-to-drink mixes which combine the company’s expertise in soft drinks and spirits into pre-made cocktails that ensure a perfect drink every time.
In the Lightning Round, Cramer was bullish onCedar Fair (FUN) – Get Cedar Fair, L.P. Report, Cisco Systems (CSCO) – Get Cisco Systems, Inc. Report, Roblox (RBLX) – Get Roblox Corp. Class A Report, Hertz Global Holdings (HTZ) – Get Hertz Global Holdings Inc Report and MP Materials (MP) .
Cramer was bearish on Ciena (CIEN) – Get Ciena Corporation Report.
No Huddle Offense: Post-Pandemic Winners
In his “No Huddle Offense” segment, Cramer said as the pandemic winds down, the market will soon anoint the post-COVID winners. After the first wave of COVID, the market fell in love with stocks like Zoom Video (ZM) – Get Zoom Video Communications, Inc. Class A Report, DocuSign (DOCU) – Get DocuSign, Inc. Report and Peloton (PTON) – Get Peloton Interactive, Inc. Class A Report, but of those three, only Peloton has staying power, as we heard on last night’s show.
But today, there’s a new crop of COVID winners, and they include DoorDash (DASH) – Get DoorDash, Inc. Class A Report, where the convenience has made it a necessity. Airbnb (ABNB) – Get Airbnb, Inc. Class A Report has also proven to be the king of travel. And both Etsy (ETSY) – Get Etsy, Inc. Report and Block (SQ) – Get Square, Inc. Class A Report, formerly Square, have shown themselves to be the way small business does commerce.
All of these stocks are great for your post-pandemic portfolio, Cramer said.
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