Value vs. Growth: Cramer’s ‘Mad Money’ Recap (Friday 03/19/21)
Like it or not, stocks are hip-joined to the bond market, Jim Cramer told his Mad Money viewers on Friday. It’s a battle of value versus growth, of industry versus technology, and these groups can never come together at the same time. That’s why next week’s game plan is based on comments from Fed Chairman Jay Powell and Treasury Secretary Janet Yellen.
On Monday we’ll hear the first part of those comments, when Powell speaks. If the bond market panics again, Cramer said he expects tech stocks to fall further.
Then on Tuesday we will have revenue from GameStop (GME) – Get a report and Adobe Systems (ADBE) – Get a report. Cramer couldn’t rationally justify GameStop heading higher from these levels and said Adobe’s earnings likely won’t shift its stock no matter how good.
Wednesday brings more comments from Powell, as well as Yellen, that could rock stocks again. We will also hear from HR retailers (HR) – Get a report and grow the generation (GRWG) – Get a report, with General Mills (GIS) – Get a report. Cramer expects good things from HR and Grow Generation. He will listen to General Mills to see how well pantry stocks are doing as the economy reopens.
Finally Friday, more economic news when we get the latest reports on personal income and consumer spending.
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Executive decision: Utz Brands
In his first segment “Executive Decision”, Cramer spoke again with Dylan Lissette, CEO of snack maker Utz Brands (UTZ) , which rose 5.2% at the close as investors applauded the company’s latest earnings.
Utz is celebrating its centenary this year and Lissette said the company has been growing brand by brand and geography by geography for decades. They are now the third largest snack maker in the United States and are well on their way to becoming # 2.
Lissette said the secret to their success is that they know how to make tasty snacks. Customers keep coming back, so Utz was able to achieve a repeat rate of 70%.
Digital media is another secret of Utz’s growth. Lissette said that Utz increased digital marketing by 60% last year and will likely increase even more this year. Digital media has allowed Utz to pivot faster, adding to their growth.
Executive decision: parvenu
For his second segment “Executive Decision”, Cramer also spoke with Dave Girouard, Founder and CEO of Upstart (UPST) – Get a report, the digital loan platform powered by artificial intelligence. Upstart shares jumped 8.8% today after the company reported 57% revenue growth.
Upstart’s mission is to improve access to credit, explained Girouard. He said their offerings were designed from the ground up to be fair and inclusive and these beliefs are at the heart of who they are.
Upstart is a paid business that partners with banks rather than taking on the credit risk itself, Girouard added. The company announced that it will acquire Prodigy Software to help it expand its offerings to the car shopping experience. Upstart has also partnered with companies like Intuit (INTU) – Get a report further promote digital personal finance.
Girouard added that Upstart is also working to translate its loan process into Spanish, tapping into a traditionally underserved market. Everything from marketing to deals to customer service will soon be available to Spanish speakers.
Cramer said investors haven’t missed Upstart’s growth, even though shares have doubled in recent months.
Executive decision: Twilio
Lawson explained that Twilio is a platform that allows developers to communicate with their customers, whether by voice, text, email, or video. And while Twilio is best known for alerting you when your delivery arrives or when your flight is late, the company also donates 1% of its profits to nonprofit entities.
Nonprofit Twilio’s efforts have taken on a whole new meaning this year as the world rushes to get vaccinated. Lawson said Twilio sends alert messages that help people make appointments, find locations, check their reactions after getting their injections and make sure they get their second dose on time. .
The COVID epidemics are putting us all at risk, Lawson added, and it has been a huge humanitarian effort to get the world to where the vaccinations are.
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Incentives for vaccines
In his segment “No Huddle Offense,” Cramer analyzed the recent exchange between Dr. Anthony Stephen Fauci, director of the US National Institute of Allergy and Infectious Diseases and chief medical adviser to the President, and Republican Senator Rand Paul of the Kentucky.
The two clashed in a COVID-19 hearing Thursday, over the value of the vaccine and whether people should wear masks after being vaccinated.
Cramer said we need to do more to get everyone to get this vaccine. In a recent survey, just 22% of small business owners say they will require their employees to get vaccinated. Meanwhile, cruises, stadiums and casinos allow people to congregate, also without the need for vaccines.
Cramer advocated a “no vaccine, no service” policy. He said if cruise ships made vaccinations mandatory, more would likely follow, as everyone is tired of this pandemic and wants to get back to normal as quickly as possible.
Here’s what Jim Cramer had to say about some of the actions the callers offered during the “Mad Money Lightning Round” on Friday night:
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At the time of publication, Cramer’s Action Alerts PLUS had a position in NVDA.