It doesn’t take everything to go well to bring the stock market together, Jim Kramer told his Mad Money viewers on Wednesday. If only one or two things turn in our favor, stocks can react like a coil.
There is no shortage of events that could make investors positive and raise stocks. The Federal Reserve could create the perfect economic soft landing by curbing inflation without causing a recession. Or there may be a peaceful solution in Ukraine. Or profits may come as a surprise, as Nordstrom did (JWN) – Get a report from Nordstrom, Inc.as shares rose 37% to close.
We don’t need all these things to work properly, just a few. Falling oil prices may work. There may also be any number of data points indicating that inflation is declining.
A market that is gathering in the absence of news, as we saw on Wednesday, is often a harbinger of good things on the horizon, Kramer concluded. That is why he is among the few selected who are actually positive in the stock market despite the many bad things happening around the world.
Executive decision: Okta
In his first Executive Decision segment, Kramer spoke with Todd McKinnon, Okta’s Chairman and CEO (OKTA) – Take a Class A report from Okta, Inc., a cybersecurity company that has just published solid quarterly results. Shares of Okta rose 15% in the last week.
McKinnon explained that Okta takes advantage of cloud trends by working from home and providing a better customer experience and helping its customers be more successful with all three. Okta already has more than 15,000 customers and plays in an address market worth $ 80 billion.
Asked by critics that Okta is not making money, McKinnon said their strategy has not changed in the last six years. With such a huge market opportunity ahead of them, the best way to use their money is to invest in their business, not focus on profits.
Asked about their identity decisions, McKinnon said the whole industry is moving to a “zero trust” model, where every user is checked every time, ensuring that only the right people have access to the resources they need to have. access. As cyberattacks increase, zero trust is a must-have technology.
“Random” high yields
Wall Street craves security, Kramer told viewers. So when times get tough, it’s time to look for high-quality stocks that trade at absurdly low levels. You can always return to stocks with big dividends, which is why Kramer offered his top 10 favorite “random” high-yields.
At the top of the list was longtime Simon Property Group favorite (SPG) – Take the report of Simon Property Group, Inc., shopping center REIT with 4.8% yield. This is the perfect stock now that COVID is fading.
Simon was followed by Dow Chemical (DOW) – Get a report from Dow, Inc.International document (IP) – Get a report from an international paper companyWalgreen Boots Alliance (WBA) – Get a report from Walgreens Boots Alliance Inc and the Contour brand (CCB) – Get a report from Kontoor Brands, Inc.all of which have a yield of over 4%.
Cramer also recommended Newell Brands (NWL) – Get a report from Newell Brands Incwhich turns and offers a 3.9% return, along with American Eagle Outfitters (AEO) – Get a report from American Eagle Outfitters, Inc, which trades only seven times profit with a yield of 3.7%. Pfizer (PFE) – Get a report from Pfizer Inc also entered the list, as well as Innovative Industrial Industrial Properties (IIPR) – Get a report on Innovative Industrial Properties Incwith its yield of 3.1%.
Kramer’s last name in the top 10 was also a longtime favorite, Morgan Stanley (MISS) – Take the Morgan Stanley report.
Executive decision: Snowflake
For his second segment, “Executive Decision,” Kramer also spoke with Frank Slutman, chairman and CEO of Snowflake. (SNOW) – Get a Class A report from Snowflake, Inc.the cloud-based data and analytics company, which fell 22.8% on Wednesday after slowing revenue growth.
Slootman explained that investors are apparently still getting used to Snowflake’s consumption revenue model. He said that unlike the typical SaaS model, which is negotiable and easier to follow, Snowflake is consumption-based and varies depending on usage.
This means that when Snowflake has an influx of new customers with no history, they have less visibility of how those customers will grow, leading to more conservative forecasts. Given previous history, the growth of these new customers must grow into big profits in the future, he said.
Slootman advertises customers as Instacart as proof of the value it offers. Using Snowflake, Instacart was able to expand to respond seamlessly to the demand for the pandemic. Snowflake has proven that it can scale even in extreme scenarios.
Lightning Round
Lightning Round Cramer was the bull of the Norwegian Cruise Line (NCLH) – Get a report from Norwegian Cruise Line Holdings LtdCemig (CEMIG) and Massimo (MASS) – Get a report from Masimo Corporation.
Kramer was a bear on Foot Locker (FL) – Get a report on Foot Locker, Inc and DigitalBridge (DBRG) .
Downgrade of Tesla
In his No Huddle Offense segment, Kramer said as much as he loves Elon Musk and Tesla (TSLA) – Get a report from Tesla Incstock market momentum has now shifted in favor of inherited carmakers such as Ford (Ф) – Get a report from Ford Motor Company and princes like Rivian (RIVN) – Get a report from Rivian Automotive, Inc. Class A.
On Wednesday, Ford announced that it was effectively splitting the company in two, with an internal combustion department and an EV department. This will allow Ford to build the best possible teams for each country, while sharing financial resources. Ford is now aiming to build two million electric vehicles by 2026. Today’s 8.38% rise in Ford shares shows that investors think it’s possible.
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