Game Plan: Cramer’s ‘Mad Money’ Recap (Friday 3/5/21)

The “Goldilocks” employment report provided the perfect opportunity for investors to lighten their positions and raise money, Jim Cramer told his Mad Money viewers on Friday. But don’t be fooled, he warned, interest rates and the bond market still dictate where stock prices go.

Cramer’s plan for next week’s action is watching the bond market as any further rise in interest rates will derail all gains in the stock market. Cramer’s other eye will be on Stitch Fix SFIX) – Request report on Monday. He expects a better than expected quarter from this online retailer.

On Tuesday, Cramer focuses on another retailer, Dick’s Sporting Goods DKS) – Request report, which is ready to collect when team and youth sports return after a one-year hiatus.

Next Wednesday we will receive income from Campbell Soup CPB) – Request report and Oracle ORCL) – Request reportCramer said packaged foods don’t impress Wall Street these days, even with a 3.2% dividend yield, but Oracle is just the low-risk technology stock investors are looking for.

Thursday brings in revenue from two more retailers, JD.com JD) – Request report and Ulta Beauty ULTA) – Request reportCramer is looking for strong results from both companies, especially the old favorite Ulta.

Finally on Friday, AT&T T.) – Request report will hold an analyst day, but Cramer said he wouldn’t be a buyer. The troubled telco may have an attractive dividend yield, but its stocks continue to fall and erase those gains.

Cramer and the AAP team look at everything from earnings and rates to the Federal Reserve. Learn what they tell their investment club members and join the conversation with a free trial of Action Alerts Plus.

Executive decision: Okta

In his first “Executive Decision” segment, Cramer spoke with Todd McKinnon, president and CEO of cybersecurity giant Okta OKTA) – Request report, along with Eugenio Pace, CEO of Auth0. Earlier this week, Okta announced it was acquiring Auth0 in a $ 6.5 billion deal.

McKinnon said Okta ended the year strongly, with sales up 43%, totaling more than $ 800 million for the year. The cybersecurity and identity management markets are huge, he added, and there is still plenty of room to grow.

Pace noted that the world is controlled by software and that every company is becoming a software company. That means there is a growing need for developer tools that make developers’ lives easier and faster, and that’s what Auth0 offers.

When asked why Okta had to acquire Auth0, McKinnon explained that the companies are complementary. He said the workforce identity market is worth $ 30 billion, but customer ID management, where Auth0 excels, adds $ 25 billion to that.

You have to assume that the bad guys are everywhere, McKinnon concluded, and so the combination of Okta and Auth0 allows companies to quickly and securely authenticate any user, any machine, and now any customer.

Executive Decision II: Trex

In his next exclusive “Executive Decision” segment, Cramer spoke with Bryan Fairbanks, president and CEO of Trex, manufacturer of composite decking. TREX) – Request reportShares of Trex are up 63% in the past year as people across the country tried to upgrade their homes and backyards in the midst of the pandemic.

Fairbanks said Trex’s main competitor is still wood, which accounts for 78% of all decks in America. There is plenty of room for all players, he added, when asked about rival Azek AZEK

Wood isn’t as environmentally friendly as you might think, Fairbanks explained. Pressure-treated wood contains many chemicals and the product lasts only 10 to 15 years. All those chemicals end up back in the soil at the end of their lifespan.

Trex, on the other hand, lasts a lifetime, and the company uses 400 million pounds of plastic every year that would otherwise end up in landfills.

Trex is now available in more than 6,700 locations across the country. The company serves both contractors and the do-it-yourselfer looking for a superior decking material.

Executive Decision III: Nutanix

In his next Executive Decision segment, Cramer spoke with Rajiv Ramaswami, president and CEO of cloud software provider Nutanix. NTNX) – Request reportShares of Nutanix are down 25% from their highs earlier this year.

Ramaswami said Nutanix is addressing the two main concerns of companies today, digitalization and dealing with remote workers. The company’s virtual desktops and cloud platforms are perfect solutions for both needs.

When asked about investor concerns about the company’s earnings, Ramaswami explained that Nutanix, like many other companies, including Adobe Systems ADBE, is moving from selling hardware equipment to subscription software. As their renewal activities kick in, the revenues will grow the business again.

Finally, when asked about the red-hot topic of security, Ramaswami noted that Nutanix is constantly building new security features into their products. Some of their latest offerings help detect and stop ransomware attacks.

On Real moneyCramer responds to the companies and CEOs he knows best. Get more of his insights with a free Real Money trial.

No craziness

In his “No Huddle Offense” segment, Cramer said in volatile markets like this, your worst enemy could be your fellow shareholders. Take Costco COST) – Request report, the retailer that just delivered mixed results, including 15% of the same sales growth. With shares of $ 70 from their peak, Costco is a buy in Cramer’s book.

But for the home gamer who buys on margin or the hedge fund manager who has to raise money to cover redemptions, Costco isn’t a company with great fundamentals and a low stock price, it’s just a source of funds. These shareholders cannot be expected to respond to great earnings, Cramer said, which makes investing a lot harder than it used to be.

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