Market Recap with Jim Cramer: Chewy, Corsair and Chevron
The market is betting crude oil will continue to rise, forcing the Federal Reserve to take action, Jim Cramer told his Mad Money viewers.
Despite last week’s pullback, the first-month contract for West Texas Intermediate is up more than 12% since the end of May.
“There is nothing wrong with the market being driven by oil, as long as the rest of the industrialists are following closely. In this case, oil is alone and is growing not because of growing demand, but because of a lower supply, “Jim Cramer told his Mad Money viewers.
Many oil wells were closed as the economy slowed during the pandemic and still have not returned. As prices continue to rise, production will eventually return to normal levels, Cramer said, making the current rise in crude prices temporary.
Cramer said he’s still an oil fan, however recommending stocks like Chevron (CVX) – Get a report, Pioneer of natural resources (PXD) – Get a report and more recently, Exxon Mobil (XOM) – Get a report, after recent changes to the company’s board of directors.
Cramer also says the technology is back. From FAANG stocks to Microsoft and Advanced Micro Devices, he says, “let me tell you what is pushing these crazy moves out of industries and banks so that you can understand them and even profit from them.” Check out his ideas and more on Real Money.
Here are the top 5 videos from last week:
Twilio will do well if inflation peaks
Cramer had some thoughts on the stocks to watch in his recent Real money column and mentioned Twilio (TWLO) – Get a report as one to choose from if it was on the shelf of a supermarket.
“I think Twilio is an action that can do well,” Cramer says. “Junior growth stocks tend to do well if you think inflation is peaking and cyclical stocks tend to do well if you think inflation is going to be raging. I agree that inflation is transient. . ”
“Clean up in aisle seven!” Cramer wrote on Real Money. “When you hear that in a supermarket, you have to prepare for a mess if you need anything in seven. Or, it doesn’t mean anything to you at all, because you’re not in that aisle and you don’t. don’t want to go … And the same goes for the stock market, which has a series of aisles – some of which really need to be cleaned up, namely industries and financials, and some of which have a strong asks and it’s hard to keep the merchandise on the shelves, “he continued.
Find out more information and investment ideas from our other real money contributors.
MicroStrategy has become a binary game on Bitcoin
MicroStrategy (MSTR) – Get a report plans to sell up to $ 1 billion in shares to collect more digital currency. The company has filed an “off-the-shelf” registration with the Securities and Exchange Commission to sell up to $ 1 billion in general purpose common stock, which includes – by the company – buying more Bitcoin .
When asked about a company buying Bitcoin now, Cramer says he thinks it’s irresponsible. “MicroStrategy has just become a Bitcoin game, so if you want to play it, go ahead. For me, I think they have become a binary game on Bitcoin … I think Bitcoin should be 5% of your wallet. and I think gold should be 5% … I replaced half of my gold with Bitcoin. That’s the suggested allocation we made and I’m sticking with that, “Cramer said. .
Corsair: buy, sell or hold?
Corsair (CRSR) – Get a report has become a momentum stock. The gaming gear and content maker has appeared to add its name to the favorites list of the memes stock.
Last month, Corsair reported first quarter profit of $ 80 million on revenue of $ 529 million thanks to strong growth in its games and peripherals business.
Cramer loves the business but cautions investors that other than GameStop and AMC other stocks haven’t been able to achieve that momentum. “Corsair is a great company and I love it … what the memesters haven’t been able to demonstrate is that they keep away from Gamestop (GME) – Get a report and AMC (AMC) – Get a report,” he said.
Cramer says Chewy Stock is buy after profits
Cramer thinks Chewy (CHWY) – Get a report is a buying opportunity. “They have one [subscription growth] number that was not what some people wanted, the company is also facing around $ 40 million in supply shortage – which is a high quality issue … it is a demand shortage that you do not want – and it was not a quarter. But, what I’m looking at when it comes to Chewy is if each year the Chewy subscriber uses more products, and the answer is: yes, dramatically. It continues and the lifetime value is extraordinary, ”he said.
For an “Executive Decision” segment on Mad Money recently, Cramer sat down with Sumit Singh, CEO of Chewy, the online pet emporium which has seen its shares drop 12% as investors flock to it instead. economic reopening actions. Singh said the increase in pet adoption is not just a pandemic event. Chewy works with more than 6,000 pet shelters across the country that report adoptions continue to grow in double digits.
When asked about their continued success, Singh noted that 69% of Chewy’s volume comes from their auto-shipping subscription programs.
Cramer: Why big banks struggle to follow in fintech footsteps
In his ‘Cramer’s Playbook’ segment, Cramer said he’s always been a huge fan of fintech, but he recently got another big reason. Jamie Dimon, CEO of JPMorgan Chase (JPM) – Get a report, he was recently asked why his bank struggles to compete with upstarts like Square (SQ) – Get a report. Dimon’s response was simply that JPMorgan “didn’t have the imagination” to think of offering small business loans based on their daily receiving volumes.
Dimon added that companies like Square also don’t have the legacy systems that weigh on big banks like JPMorgan, nor do they have to swim in the sea of regulatory requirements. But Dimon’s first response, failure of the imagination, is what caught Cramer’s attention. JPMorgan didn’t see what its customers needed, but American Express (AXP) – Get a report did so when acquiring Cabbage, which offers similar treasury services.
“I think that he [Dimon] have a huge desire for fintech … they are [JPMorgan] in a regulatory network, they have many different organizations regulating them, and that’s not what Square has. Square can do whatever it wants because it’s a tech company … the real problem is, it hasn’t listened to the customer, “Cramer said.
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