Game plan: Cramer ‘Mad Money’ recap (Friday 3/5/21)

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

Cramer’s game plan for next week’s action keeps an eye on the bond market, as any further increase in interest rates will hurt any gains in the stock market. Cramer’s other eye will be on Stitch Fix (SFIX) – Get report on Monday. He expects another better-than-expected quarter from this online retailer.

On Tuesday, Cramer will focus on another retailer, Dick’s Sporting Goods (DKS) – Get report, which is expected to recover as team and youth sports return after a one-year hiatus.

Then, on Wednesday we will have the Campbell soup earnings (CPB) – Get report and Oracle (ORCL) – Get report. Cramer said that packaged foods do not impress Wall Street today, even with a 3.2% dividend yield, but Oracle is just the low-risk technology stock investors are looking for.

Thursday brings earnings from two more retailers, JD.com (JD) – Get report and Ulta Beauty (ULTA) – Get report. Cramer is looking for good results from both companies, especially the old Ulta fav.

Finally on Friday, AT&T (T) – Get report will hold an analyst day, but Cramer said he would not be a buyer. The troubled telco may have an attractive dividend yield, but its shares continue to fall and erase those gains.

Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they are saying to investment club members and join the conversation with a free trial subscription to 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) – Get report, along with Eugenio Pace, CEO of Auth0. Earlier this week, Okta announced that it will acquire Auth0 in a $ 6.5 billion deal.

McKinnon said Okta ended the year strong, with subscription revenue growing 43%, totaling more than $ 800 million for the year. The markets for cybersecurity and identity management are huge, he added, and there is still a lot of room for growth.

Pace noted that the world is run by software and each company is becoming a software company. This means that there is a growing need for developer tools that make developers’ lives easier and faster, which is what Auth0 offers.

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

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

Executive Decision II: Trex

In his next exclusive “Executive Decision” segment, Cramer spoke with Bryan Fairbanks, president and CEO of composite deck maker Trex (TREX) – Get report. Trex’s shares rose 63% last year as people across the country struggled to improve their homes and backyards in the midst of the pandemic.

Fairbanks said Trex’s main competitor remains 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 is not as environmentally friendly as you might think, Fairbanks explained. Pressure-treated wood involves many chemicals and the product lasts only 10 to 15 years. At the end of his life, all of these chemicals return to the soil.

Trex, by comparison, lasts a lifetime and the company uses 400 million pounds of plastics every year that would otherwise end up in landfills.

Trex is now available at more than 6,700 locations across the country. The company caters to contractors and homeowners looking for superior deck 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) – Get report. Nutanix shares fell 25% from their highs earlier this year.

Ramaswami said that Nutanix addresses the two main concerns of companies today, digitization and dealing with a remote workforce. The company’s virtual desktops and cloud platforms are perfect solutions for both of these needs.

When asked about investor concerns about the company’s revenue, Ramaswami explained that, like many other companies, including Adobe Systems ADBE, Nutanix is moving from selling hardware devices to subscription software. As your renovation business begins, revenues will make the company grow again.

Finally, when asked about the hot topic of security, Ramaswami noted that Nutanix is constantly creating new security features in its products. Some of its latest offerings help to detect and prevent ransomware attacks.

On Real money, Cramer talks about the companies and CEOs he knows best. Get more of your insights with a free trial subscription to Real Money.

No offense Huddle

In his “No Huddle Offense” segment, Cramer said that in volatile markets like these, his worst enemy could be his fellow shareholders. Take Costco (COST) – Get report, the retailer that just published mixed results, including 15% same-store sales growth. With shares below $ 70 from its highs, Costco is a buy in Cramer’s book.

But for the domestic player who buys on the sidelines or for the hedge fund manager who needs to raise money to cover bailouts, Costco is not a company with great fundamentals and a low share price, it is just a source of funds. These shareholders cannot be expected to respond to large profits, said Cramer, which makes investments much more difficult than they used to be.

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