Jim Cramer - Mad Money

Long-term view MU is no longer in a boom-bust cycle like it was in the 1990s. That said, a better long-term buy in chips is AMD as they close their deal with Xilinx.

They closed their Slack takeover today. They're challenging Microsoft for enterprise software supremacy. The Slack deal means that CRM will no longer by weighed down by arbitrage guys; there's a whole industry of arbitrage which short the buyer in these situations and he thinks that's why CRM stock has been flat since the Slack deal was announced last December. He thinks CRM stock is heading higher.

Doesn't like their business model. There are better stocks in this space to buy, like UnitedHealth.

The airlines are ready for take-off, as reflected in this earnings season and being international flights pick up. Meanwhile, they see no degradation from the new Covid variants. UAL just reported strong numbers and he expects the entire sector to follow suit. The industry will end the year very profitable. United, Delta and American have all reported improving financials and bookings. The airlines were saved by Washington when Congress allocated them $54 billion during the lockdown in 2020.

Too much speculation and not enough stablity in the face of Covid uncertainty, which explains today's meltdown. This was the end of euphoria. The spec stocks, which attracted young investors, were hardest hit. Those specs include SPACs (638 this far so far, which is insane), IPOs and the Reddit/meme stocks, such as Corsair. Throw in the cryptos, though he likes and own Bitcoin, but likes it more at lower levels. Crude oil was also speculative.

Another turnaround story, but not convincing like Wells Fargo is. Without a big reserve release, Citi's report last week would have disappointed. It has trouble controlling its expenses; they raised their expense forecast. Citi is up only 11% YTD.

Delivered another strong quarter. Their main strength came from their episodic businesses while asset management weren't as strong. That's why shares rolled over last week. It plunged today, but he'd still prefer MS or Wells Fargo.

They make home security hardware, using an app to control your security service. Yes, Apple has stuff, but Arlo's stuff is solid. In recent years, they're pushing hard into services, including for business clients. Arlo is down 23% YTD. It was spun off from Netgear in 2019 and soon tanked from strong competition, dour outlook and other factors. One big risk was one shareholder owning the lion's share. Pivoting to services last year was a good move, though and now boast a 50% conversion rate to pick up customers (from a trial basis). Losses are shrinking and their quarterly reports are certainly improving. Strong Q1 results, though they were a victim of the spring rotation play. Though margins have improved, it's still losing money. But at $6/share now, this is ridiculously cheap. Carries no debt and trading at 1.2x sales. Could be a takeover target.

Rising oil prices are a concern, but what really worries him is the lawsuit that Norwegian Cruise Line filed (against Florida to cease FLA's ban on vaccine passports). With the Delta variant coming, he'd buy NCLH over other cruise lines, like Carnival.

Bank of America reports there's an 8% increase in travel vs. 2019 (not 2020 during Covid). This trend will benefit American Airlines and Delta (his favourite airline), especially when international travel returns. True, shares have run up, but he feels there's still plenty of runway left.

Bank of America reports there's an 8% increase in travel vs. 2019 (not 2020 during Covid). This trend will benefit American Airlines and Delta (his favourite airline), especially when international travel returns. True, shares have run up, but he feels there's still plenty of runway left.

Futures were negative this morning, but Monday's markets were a bonanza, hitting record highs. Why? The futures are worthless as a weathervane. However, the downward tug of the futures can offer a buying opportunity if you're savvy. See Disney, AmEx, Goldman Sachs and JPM comments today as examples.

Like GS this morning, JPM shares fell down at the start of today's session because of negative market futures, then rebounded sharply. In this case, futures are a gift, offering a sweet buying opportunity.

Demand for solar power and their stocks enjoy huge tailwings. ESG is one. Companies like Blackrock and Exxon Mobil are making ESG a serious priority, for example. Secondly, out electric grid is falling apart. Witness the Texas outage last winer. Third, new homeowners are happy to add solar panels to their roofs as prices of panels keep plunging. Fourth, governments are supporting solar panels more and more; for example, the federal government is offering tax credits, and Biden wants to extend the solar tax credit by 10 years. Also, Biden has slapped tariffs on foreign panels, and the American industry is divided over this. One of his three favourite solar stocks is First Solar. FS makes its own panels and proprietary technology. They're sold out for 2021 and nearly for 2022. They have an excellent balance and trades at 21x earnings. You can buy a partial position write now or buy on dips.

Demand for solar power and their stocks enjoy huge tailwings. ESG is one. Companies like Blackrock and Exxon Mobil are making ESG a serious priority, for example. Secondly, out electric grid is falling apart. Witness the Texas outage last winer. Third, new homeowners are happy to add solar panels to their roofs as prices of panels keep plunging. Fourth, governments are supporting solar panels more and more; for example, the federal government is offering tax credits, and Biden wants to extend the solar tax credit by 10 years. Also, Biden has slapped tariffs on foreign panels, and the American industry is divided over this. Solar panels need an inverter to work. Micro-inverters are new technology and Enphase is the leader in micros. This is a great long-term growth story and one of his top three solar energy picks.

Demand for solar power and their stocks enjoy huge tailwings. ESG is one. Companies like Blackrock and Exxon Mobil are making ESG a serious priority, for example. Secondly, out electric grid is falling apart. Witness the Texas outage last winer. Third, new homeowners are happy to add solar panels to their roofs as prices of panels keep plunging. Fourth, governments are supporting solar panels more and more; for example, the federal government is offering tax credits, and Biden wants to extend the solar tax credit by 10 years. Also, Biden has slapped tariffs on foreign panels, and the American industry is divided over this. A few years ago they made acquisitions to store solar power energy. Stock looks pricey now, but the stock has quadrupled over 16 months. Buy a small position now. A great way to play solar energy.

A cloud company that does database management, beloved by app developers. It's soared 10x since its IPO less than four years ago, including a 173% run in 2020. This (and cloud stocks) peaked earlier this year at $428 in February then plunged to $238 in its May lows. Since then, it's roared back to $390 and now $350 today. It's volatile. At the end of June, it lost some momentum with a secondary offering. The stock is down 2% YTD. It's growing 32% annually, but is pricey at 30x this year's PE estimates. (Snowflake is at 70s, though.) He's conflicted.

The weed space is too crowded. He likes Grow Generation.

https://www.reuters.com/business/energy/exclusive-blackrock-backs-three-director-nominees-challenging-exxons-board-2021-05-25/ They report next week, and he wants to hear them clarify their position on Engine No.1,. a hedge fund, and Exxon. As a huge ETF company, Blackrock owns tons of shares of everything, so their position in Engine/Exxon could have major implications to all companies.

They report Friday. KSU may comment on Washington trying to block the deal with a Canadian rail (CN), and he wouldn't be surprised if this block happens.

Could be better than Coinbase to play cryptos. This is a good one. It's better than buying cryptos themselves.