When companies make money for their shareholders, the shares deserve to be higher.
It was Jim Cramer’s thoughts after seeing the action at Apple (AAPL) – Get a report, Amazon (AMZN) – Get a report, Facebook (FB) – Get a report and Alphabet (GOOGL) – Get a report this quarter.
Cramer told his Money Money viewers on Thursday that while the pandemic has been horrible for most Americans, our nation’s tech companies have learned to act on it.
The loss of the old economy is the gain of the new economy, Cramer told viewers, and the pandemic has pushed through the digital transformation plans of many companies in three to five years. This means that technology companies are making a fortune and deserve all their successes.
Cramer said Amazon delivered $ 89 million in revenue when analysts were only looking for $ 81billion. Apple gave its shareholders nearly $ 60 billion in revenue and a 4: 1 stock split. Facebook continues to experience strong growth in its small businesses. Only Google seemed to disappoint, Cramer said, but noted that Google is not so promotional that they are almost anti-promotional in their conferences.
Cramer concluded that these technology giants have learned to thrive in the toughest conditions. It makes sense for your stocks to go up.
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Executive decision: Utz
In his first “executive decision” segment, Cramer spoke with Dylan Lissette, CEO of Uzt Quality Foods, and Roger Deromedi, co-founder of Collier Creek Holdings, who will meet in a reverse merger later this quarter.
Lissette said Utz is a 100-year-old family business that started in 1921. Now they look forward to their next century meeting with Collier as a publicly traded company.
Deromedi, which comes from Pinnacle Foods, which was acquired by ConAgra (CAMP) – Get a report in 2018, they said they are looking to use what they learned at Pinnacle to create the next generation of snack food company. He said the Utz family of brands will be just the beginning of this next chapter.
When asked why savory snacks are such a fantastic category, Lissette said during the pandemic, people just want comfort food and that means going back to the brands they know and trust. He said his home in Hanover, Pa., Was also home to Hanover’s Snyder’s brand of snacks and is a tribute to the people, heritage and work ethic of the area.
Investors can currently buy Collier shares under the ticker (CCH) – Get a report. When the transaction is closed, the ticker will change to UTZ and the company will be called Utz afterwards.
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Executive decision: Dr. Keurig Pepper
For his second segment of “executive decision making,” Cramer also spoke with Bob Gamgort, president and CEO of Keurig Dr. Pepper (KDP) – Get a report, the beverage manufacturer that recorded significant profits, but saw its shares fall 1.5% after closing.
Gamgort said sales remain strong at Dr. Keurig. Pepper. He said sales of Dr. Pepper has grown 17 quarters in a row, while Canada Dry has grown every year for the past 13 years. E-commerce has also become a major distribution channel, accounting for 10% of total sales.
Gamgort was also instrumental in his recent collaboration with the manufacturer of the Polar brand. He called his deal a “perfect match” of brands and distribution capabilities.
Keurig continues to innovate with its new “Duo” coffee maker line that can make individual cups like coffee jars. Keurig is also committed to sustainability and its K cups will be 100% recyclable by the end of this year.
Cramer named Dr. Keurig. Pepper “a winner.”
Executive decision: Taylor Morrison Homes
For his final “Executive Decision” segment, Cramer paid a visit to Sheryl Palmer, CEO of home builder Taylor Morrison Homes (TMHC) – Get a report, which recorded a gain of 21 cents per share and saw its shares sink 3.3%.
Palmer said they have seen many changes over the past 20 weeks in Taylor Morrison. She was what started out as a slow pace that has now become a growing trend for urban consumers looking for more home office space, aging parents and a better lifestyle. He said improved technology allows them to work anywhere and that consumers come out of dense urban areas.
Palmer said home buyers are also looking for healthy home features, which is why as of Aug. 1, Taylor Morrison is making an improved standard of clean air, clean water and no chemical processes. in all their houses. He assured that these purchases will soon be expected by all home buyers.
Taylor Morrison has experienced a 94% increase in sales over last year.
Appetizer for Yum
Cramer, in his Non-Offensive segment, has said the restaurant apocalypse is upon us. This was his chance after hearing the Yum brands (YUM) – Get a report conference this quarter.
Cramer explained that in the call, Yum noted that Pizza Hut, its largest division, increased sales of the same store by 1%, even though its dining rooms were closed. Why does this matter? Cramer said Pizza Hut, along with Taco Bell and KFC, have the magnitude of the transition from lunch to reception and driving, but independent restaurants do not. They are simply not built to compete in a world of buying and delivering.
Cramer said small restaurants can only accommodate half the number of customers who used to be there. Its bars remain closed. Your food does not travel well. And the margins they would entail are now directed at the delivery service. However, their costs, labor, and overhead remain the same.
Cramer said it’s clear that located restaurants can’t survive in a COVID-19 world, which is why we need encouragement or a vaccine to save them.
Here’s what Jim Cramer had to say about some of the actions the conveners offered during the Thursday evening money jet money round:
Vaxart (VXRT) – Get a report: “I don’t like the informant selling in this stock.”
Dynatrace (TD) – Get a report: “This has been a real winner and they are cheap.”
Rosetta Stone (RST) – Get a report: “I think this is a good domestic brand stock.”
Partial load (LNK) – Get a report: “I can’t recommend it. I like Tesla (TSLA) – Get a report. I’ll stick with that. “
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At the time of publication, Cramer Action Alerts PLUS had a position AAPL, AMZN, FB, GOOGLE.