Next week marks the start of the real earnings season, Jim Cramer told his Mad Money viewers on Friday. Then we begin to see the real effects of inflation and the economic reopening. Inflation is certainly negative, Cramer said, but the reopening is so strong that it’s likely to get us through.
Cramer’s game plan begins Monday when we earn Coca-Cola (KO) – Get report, United Airlines (UAL) – Get report and IBM (IBM) – Get report. Coke has no snack, but it should still go well if restaurants reopen. United will win if the journey resumes. As far as IBM is concerned, it’s too early to know if things will turn around.
Then, on Tuesday, Cramer was at Abbott Laboratories (ABT) – Get report and Johnson & Johnson (JNJ) – Get report, who according to him was unfairly punished. Procter & Gamble (PG) – Get report facing difficult comparisons with rising inflation. But Netflix (NFLX) – Get report should call Cramer’s expectations the funniest conference call of the season.
Wednesday delivers Verizon earnings (VZ) – Get report, but Cramer prefers T-Mobile (TMUS) – Get report. He has positive things to say about Chipotle Mexican Grill (CMG) – Get report and Lamb research (LRCX) – Get report.
Then on Thursday we will hear about the Cramer favorites Union Pacific (UNP) – Get report, Dow Chemical (DOW) – Get report, Danaher (DHR) – Get report, Nucor (NUE) – Get report and Boston Beer (SAM) – Get report. The only negative on the day, Intel (INTC) – Get report, which according to Cramer should only be bought on weakness.
Finally, on Friday, the week ends with more bullish news from Honeywell (HON) – Get report and American Express (AXP) – Get report, along with an analyst day by Bristol-Myers Squibb (BMY) – Get report, which should all be fantastic.
Cramer and the AAP team look at everything from earnings and politics to the Federal Reserve. Discover what they’re telling their investment club members and start the conversation with a free trial entry on Action Alerts Plus.
Executive decision: Metromiel
In its first ‘Executive Decision’ segment, Cramer spoke to Dan Preston, CEO of Metromile MILE, the digital insurance provider whose customers pay their car insurance per mile instead of a standard flat rate.
Preston said at Metromile, tailor-made insurance is tailored to the individual, and low-mileage customers can get up to 47% off traditional fixed rates.
Traditional insurance is a commodity, Preston added, which is why insurance companies spend billions to keep their name in mind. At Metromile, most of their business comes from referrals, which dramatically reduces their costs. The product experience speaks for itself.
Executive decision: QuantumScape
For his second ‘Executive Decision’ segment, Cramer also spoke to Jagdeep Singh, chairman and CEO of QuantumScape (QS) – Get report, the solid-battery manufacturer that came under fire from a research firm, Scorpion Capital, which characterized the company as a ‘pump-and-shower scam’. QuantumScape immediately responded to Scorpion’s allegations and answered all of their concerns.
Singh said QuantumScape has always been very transparent about what they have and the work yet to be done. He said that although they have so far solved some of the most important problems that solid batteries contain, they have only been able to manufacture single-layer and four-layer cells. They have to keep working to produce cells with tens of layers.
Singh quotes Volkswagen’s (VLKAY) recent $ 100 million investment as proof that his company really is. He said the investment with VW required their cells to pass certain milestones, and that they had recently sent cells to Germany that had passed the milestones.
When Singh was asked about his thoughts on Scorpion Capital, he politely remarked that short sellers are investing in high value stocks and trying to beat them down, so he is not surprised that they have become a target. He noted that nothing in their 188-page report was original research, and that most of it was ‘simply absurd’.
On Real money, Cramer joins the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
Off the Tape: The Zebra
In the “Off The Charts” segment, Cramer reported to colleague Keith Melnick on the chart of Zebra Technologies, a service provider.
Melnick, who hails from the travel comparison service Kayak, said there are many similarities between the two industries. He said both were fragmented, complicated and opaque in the price of their services.
Before The Zebra, people were forced to waste time buying websites in different transportation companies, or buying on websites that only a handful of sellers compare. Melnick said it took The Zebra a lot of time to solve the problem, and his company now has relationships with hundreds of transportation companies across the country.
Tensions between China and the US
In his segment “No Huddle Offense”, Cramer considers the deteriorating relations between the US and China. He said that when President Biden took office, everyone, including him, expected relations to cool down and diplomacy to prevail. But so far, Biden has not reversed any of Trump’s difficult stance on China.
The focal point remains Taiwan, which enjoys autonomy but not direct independence from China. Over the past few months, tensions over Taiwan have escalated as two superpowers fight for relevance and dominance.
This is a worrying trend, Cramer concluded, and one has no end in sight.
Lightning Round
Here’s what Jim Cramer had to say about some stocks offered by callers during the “Mad Money Lightning Round” Friday night:
Lithia Motors (LAD) – Get report: “It’s a good stock. I’ll buy it here.”
World Wrestling Entertainment (WWE) – Get report: “It’s a very well run business. I think you’re in good hands.”
Innovative industrial properties (IIPR) – Get report: “I believe in this one.”
Fiverr International (FVRR) – Get report: “I believe a lot in the company, but the stock is quite expensive. I will bless it with Wix.com (WIX) – Get report. “
Offense (UPST) – Get report: “It’s very short. People are trying to upset it all the time. I think it’s a good situation.”
United Natural Foods (UNFI) – Get report: “This stock is in a monster move. I’ll wait for it to cool down.”
Browse Jim Cramer’s “Mad Money” recommendations using our exclusive “Mad Money” stock screen.
Visit to see the reruns of Cramer’s video segments Mad Money Page on CNBC.
To sign up for Jim Cramer’s free Booyah! newsletter with all his latest articles and videos click here.
At the time of publication, Cramer’s Action Alerts PLUS was a position in HON, ABT.