“The fact is that oil’s come down, and oil is their biggest cost. People are still traveling,” the “Mad Money” host said of the airlines, which have been under Wall Street scrutiny amid rising oil prices because of their correlation to jet fuel costs.
“I’m taking a hard look, and urge you to take a look, at [the stock of] Southwest Airlines at $57,” Cramer said.
He also shared the two reasons why investors should buy high-growth stocks at a discount rather than swapping into value plays. To read more on that, click here.
Sebastian said that stocks could see another bout of pain even after recovering from a widespread sell-off two weeks ago, adding that the VIX would likely peak before the selling was over.
In short, Sebastian said the market would see “a total hammering,” in which “the averages would bottom if they made new lows and the VIX did not make a new high,” Cramer said.
“Sure enough, that’s exactly what happened today right before the market turned,” the “Mad Money” host continued. “The bottom may be put in on the next swoon down if it isn’t in already.”
Click here to find out why Cramer’s so convinced.
One particular housing stock told Cramer on Tuesday that the group could be bottoming after several weeks of pain, which was tied chiefly to the Federal Reserve’s interest rate hikes.
“We’ve seen homebuilder after homebuilder report genuinely good results and then their stocks just absolutely got obliterated,” the “Mad Money” host said. “Pulte[Group] posted better-than-expected headline numbers, but there was also some weakness, like first-time orders down 13 percent.”
In the wild trading session that followed Pulte’s earnings report on Tuesday, shares of the homebuilder hit a new 52-week low before reversing course and rallying more than 7 percent.
“I think its ability to rally tells you that this bedraggled cohort may finally be finding a bottom,” Cramer said. “The fact that buyers can see value in this hideous group was the single most bullish development in a pretty darned bullish turnaround of a session.”
Click here for his full analysis — and why this doesn’t mean investors should buy the housing stocks just yet.
Private software-as-a-service company Adaptive Insights was ready to go public, traveling around the country promoting its upcoming initial public offering to its stakeholders.
Adaptive Insights CEO Tom Bogan, who has called Workday co-founder and CEO Aneel Bhusri a friend for over a decade, told CNBC on Tuesday that Workday’s rapid takeover came down to two things: compatibility and trust.
“I think the key was the alignment of cultures of the two companies,” Bogan told Cramer in a joint interview with Bhusri. “Very customer-centric, very employee-centric, and with the working relationship Aneel and I had, there was a lot of trust, which was required to do a deal in a very short time frame.”
Adaptive Insights, which focuses on cloud-based planning, collaboration and analytics, will add some $5 billion to Workday’s market opportunity, not to mention its 4,000 customers and suite of offerings, Bhusri told Cramer.
Click here to watch and read more about the full interview.
Computer accessory maker Logitech International is on a mission to ingrain itself in the world of esports.
One of its latest moves was to invest in the “Little League” of video gaming, President and CEO Bracken Darrell told Cramer in a Tuesday interview.
“There’s a start-up called Super League gaming that has teams across the United States in all the major cities,” Darrell told the “Mad Money” host, likening the start-up to a cross between Little League, Bitty Sports and Pop Warner Little Scholars.
“We have invested in that company because we do really believe in this, so we’re right on it,” the CEO said.
Speaking after Logitech reported what investors saw as mixed earnings results, Darrell insisted that Logitech’s key drivers — gaming, video collaboration and its core business — were very much intact.
“Our business is super, super hot,” he told Cramer.
Click here to watch Bracken Darrell’s full interview.
In Cramer’s lightning round, he flew through his take on callers’ favorite stocks:
Fifth Third Bancorp: “I will tell you that I saw this group put in a bottom today and I think you can actually finally pick up some Fifth Third. It’s been a hideous, hideous decline for these stocks and I think the decline is being put in in the same way I think that the bottom in housing [stocks] is being put in.”
LKQ Corp.: “No, you can’t sell it down here. This stock is in a house of pain, but it’s really ridiculous. It shouldn’t be this low. It’s a pretty good company. It’s got a very low [price-to-earnings multiple]. I would be a buyer.”
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