Cramer Remix: This is a good stock in a bad market


For investors scouring the increasingly volatile stock market in search of good investments, CNBC’s Jim Cramer suggested an under-the-radar name on Monday: Zuora Inc.

“[CEO] Tien Tzuo delivered a good number,” in late November, Cramer, host of “Mad Money,” told a lightning round caller. “It’s just that this stock is just violently out of favor.”

But “this is when you put a stock like Zuora away,” he said. “I believe in the subscription economy. I believe in what Tien Tzuo’s doing. Everyone kind of uses [Zuora] without even knowing it. It’s a good stock in a bad market.”

Also in the lightning round, Cramer laid out his thoughts on the stock of struggling industrial colossus General Electric.

“Here’s my thinking: there are so many really unbelievable stocks that are undervalued right now. I don’t want to take the risk,” he said. “Now, [at] $6, you could say, ‘Well, Jim, come on, it’s only $6 bucks.’ Well, I don’t know. I mean, remember: when it goes down, it still hurts. So you can speculate in GE, but there’s so many high-quality companies that are going down. I’d rather you be in a really high-quality company that sells at a much cheaper price-to-earnings multiple.”

Click here for the rest of Cramer’s lightning round.

As investors try to square conflicting reports on the state of the U.S. economy and U.S.-China trade relations, the action in shares of Apple has become a microcosm of the broader stock market, Cramer said Monday.

“In a way, Apple’s the perfect metaphor for this moment,” Cramer said as stocks swung higher after a wild trading session. Shares of the iPhone maker traded lower intraday on worries that a legal move by Qualcomm would stymie Apple’s sales in China, but managed to launch a small rebound into the close.

Cramer argued that Apple’s moves perfectly captured how flighty investors have become as they struggle to keep their conviction intact in this volatile market.

Click here to read more.

Splunk’s data analytics business doesn’t stop at the keyboard, President and CEO Doug Merritt told CNBC on Monday in an exclusive interview with Cramer.

“You can now talk to Splunk through Alexa, Siri or other natural-language frameworks and have Splunk respond back to you,” the CEO said on “Mad Money.”

Merritt said that the idea to connect Splunk’s growing database with voice-enabled assistants came from the question of “how to bring the power of Splunk to everybody within the organization.”

That translated into the analytics software giant leveraging its massive data set to help individual customers, a move that has become somewhat of a running theme in Splunk’s ascent to its $15.9 billion market cap.

Click here to watch and read more about Merritt’s interview.

Investors shouldn’t draw conclusions about biotechnology company Moderna solely on the stock’s worrisome action after its initial public offering, Cramer said Monday.

Moderna is in the early stages of creating medicine using messenger RNA, which transports genetic information from DNA to a body’s cells so they can produce the proper proteins to express those genes. Moderna’s idea is to engineer messenger RNA in patients with genetic diseases to tell their cells to produce different, potentially life-changing proteins.

In a stroke of unfortunate timing, the company went public on Friday during a brutal day for the major averages. Moderna’s stock fell nearly 20 percent as a result of the widespread weakness.

But if investors view the stock “purely as speculation, Moderna has a few major things going for it,” Cramer said.

Click here for his full analysis.

Rich Hume, CEO of the self-described “humble, but hungry” information technology company Tech Data, sees a clear path to the future of cloud computing, he said in an interview with Cramer.

“If you look into the future, clearly, hybrid cloud is the mode of the future,” Hume, whose company’s vendors include Apple, HP Inc. and Cisco Systems, said Monday.

“There’ll be strength, I think, in both the physical and the virtual, but the virtual will grow a lot faster” when it comes to tech, the CEO continued, noting Tech Data’s 38 percent growth in the cloud business in its most recent quarter.

Click here to watch Hume’s full interview.

FInally, Cramer tried to pinpoint the cause of the stock market’s wild swings in the last several weeks.

For the “Mad Money” host, it came down to volume, which has been particularly thin of late. As he often says, volume is like a polygraph for stocks: moves on thin volume mean the market is probably lying, while moves on high volume tend to be truthful.

This has amounted to a battle between index funds and corporate buyers on the bulls’ side, and exchange-traded fund sellers and individual sellers on the bears’ side, Cramer said.

“A market like this is inherently treacherous,” he said. “While individual buyers of common stock made an appearance this afternoon as the averages rebounded, they didn’t come out in very large numbers.”

“I think these buyers have been abused and discouraged and need the protection of the SEC because I think they’re being fleeced and driven out of the greatest wealth creator known to man,” he continued. “That’s what’s behind … the volatility. That’s behind the ridiculous exaggeration of every move in this market, both up and down. I don’t expect anything to change until we get a thorough investigation by the SEC about how this is all happening.”

Disclosure: Cramer’s charitable trust owns shares of Apple and Cisco Systems.

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