Never bet on American ingenuity and innovation. Those were Jim Cramer’s thoughts for his Mad Money viewers on Thursday, after listening on Facebook (FB) – Get Facebook, Inc. Class A Report Plans for the metaverse, which included changing the company’s name from Facebook to Meta.
Kramer said Facebook certainly isn’t without its problems. But the whole reason is that he coined the term FAANG, which stands for Facebook and Amazon (AMZN) – Get an Amazon.com, Inc. report., An apple (AAPL) – Get the Apple Inc. report. (AAPL)Netflix (NFLX) – Get a Netflix, Inc. report. (NFLX) and the alphabet (The Google) – Get the Alphabet Inc Class A reportBecause these companies are constantly reinventing themselves. Facebook on Thursday proved why it deserves to be a part of FAANG.
In the future, we’ll be testing the 3D internet, and Facebook’s commitment to virtual and augmented reality will make it an essential player in the metaverse, just as it is an essential player in social media.
However, after both Facebook and Google underwent a rebranding, it was time for a new acronym. That’s why Cramer unveiled MAMAA, which stands for Meta, Apple and Microsoft (MSFT) – Get the Microsoft Corporation (MSFT) report, Amazon and Alphabet.
So while shares of both Amazon and Apple fell 3.3% on Thursday, Cramer urged investors not to lose sight of the bigger picture. The challenges faced by both Apple and Amazon are only temporary, and each MAMAA is still poised for long-term success.
Executive Decision: Linde
In the first part of “Executive Decision,” Kramer spoke with Steve Engel, CEO of Linde (flexible) – Get a Linde plc (LIN) reportSuppliers of industrial gases all over the world. Linde shares were partially lower, down 0.3%, after the company reported strong earnings that included shrinking gross margins.
Engel noted that Linde’s last quarter has included a record backlog of projects and a record return on capital. The company now has $13.5 billion in projects to be completed, including a $600 million commitment from Taiwan Semiconductor (TSMC) Foundry in Arizona.
When asked about those tight gross margins, Angel explained that Lindy is seeing cost inflation, primarily with energy costs. And while these costs will be passed on to customers, this pass-through is not instantaneous, which means margins will shrink until things are picked up.
Cramer said investors rarely get a chance to buy Linde on a pullback, but that’s exactly what they got on Thursday.
Executive Decision: Brunswick
In the second part of “Executive Decision”, Kramer also spoke with David Foulkes, CEO of Brunswick (B.C.) – Get Brunswick’s report, the boat maker with shares of 3.7% Thursday after another better-than-expected quarter.
Foulkes explained that demand for boats remains strong, with sales only being constrained by supply constraints. He said Brunswick has been able to pass on moderate price increases, but remains committed to keeping boats accessible to as many people as possible.
Foulkes added that even with long wait times, sales of new boats remain strong, thanks in part to flexible working arrangements that allow more time on the water. Brunswick continues to gain market share, with much higher growth rates than the industry in general.
When asked about semiconductors, Foulkes noted that while specialized chips are in short supply, most of the chips Brunswick needs are generic and are still available.
Finally, Foulkes commented on the fact that 50% of Brunswick’s business now stems from annuity products that are not dependent on new boat sales. These streams include the Freedom Boat Club, which now has more than 70,000 members nationwide, as well as sales of parts and accessories that every boat owner needs.
Executive Decision: Salesforce
For the final “executive decision” segment of the night, Cramer checked in with Marc Benioff, Chairman and CEO of Salesforce. (CRM) – Get salesforce.com, inc. a report. Earlier Thursday, Benioff and his family pledged $300 million to help save the planet by accelerating ecosystem restoration.
Benioff explained that the planet is a major stakeholder for all companies, which means that every CEO needs to do three things. First, they should stick to net zero operations. Second, they have to commit to helping plant a trillion new trees in America. Our planet has lost three trillion trees to humans and we need to bring back a trillion of those trees.
Finally, Benioff said every CEO should support our fourth industrial revolution for new green technologies. He said these are the technologies we need to save the planet, and we must all support them.
Benioff has also promoted 1T.org, an organization committed to helping achieve the trillion trees goal. 1T.org is supported by companies like UPS (ups) – Get a United Parcel Service, Inc. report. Class B, PepsiCo (PEP) – Get a PepsiCo reportAmazon and Unilever (The) – Get an ADR report sponsored by Unilever PLC.
“Everyone can do something,” Benioff concluded, and it was time for us all to step up before it was too late.
Get to know your coding
In his No-Huddle Offense section, Cramer said that if you are going to invest in cryptocurrency, do so as an investor, not as a fan.
In all of his years, Cramer said, he’s never seen people get excited about stocks the way they are about Bitcoin, Etherium, and Dogecoin. He admitted that he had a “weak spot” for cryptocurrencies, even going so far as to say that investors could invest 5% of their speculative portfolios in them. But he added, you have to do it for the right reasons.
Cryptocurrency may have the word “currency” in its name, but it is actually a speculative investment, not a currency. When you bet on cryptocurrencies, you are betting on the psyche of the masses more than anything else. That’s why you can’t invest as a fan, buy it at any price and keep it forever. You have to be smart, buying on dips and selling aggressively, just as you would with another speculative investment that rose hundreds or thousands of percent overnight.
Here’s what Jim Cramer had to say about some of the stocks callers gave during the “Mad Money Lightning Round” Thursday night:
AZC company (AZEK) : “I think this is a long-term purchase.”
SLI lithium standard: “Everyone wants to play lithium, but this is a very speculative stock.”
ImmunityBio IBRX: “You’re rolling the dice here. They’re having tough cancers.”
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