Cramer’s Mad Cash Recap: Snowflake, Salesforce, Sonos

When it comes to revenue, Wall Street’s initial reactions are almost always wrong, Jim Cramer warned his Mad Money viewers Thursday. This is because reading and evaluating a results report takes some time. If you are quick to judge, you risk making mistakes.

Case in point: snowflake ((SNOW) – Get the report, which was down 4% on Thursday and only closed 4% as analysts take a second look and see just how strong the company’s growth is.

Another company that is often underestimated is ((CRM) – Get the reportBecause of this, Cramer spoke to Chairman and CEO Marc Benioff on Thursday evening to learn more.

Salesforce just finished its best first quarter ever, according to Benioff. Sales, earnings and cash flow ended better than expected. Customers like Sonos ((I AM) – Get the report used Salesforce to drive direct sales to consumers, which grew 84%.

Salesforce continues on its march for good results, focusing not only on profit but also on social, cultural and environmental endeavors. The company is actively fighting the pandemic with contact tracing applications, a vaccine cloud and tools that companies can use to get their employees back to the office.

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Executive decision: loophole

For his second “Executive Decision” segment, Cramer spoke to Sonia Syngal, CEO of Gap Inc. ((Geographic positioning system) – Get the report, the retailer that just saw earnings jump 54 cents per share.

Syngal said all four Gap brands are alive and well and are all back in growth mode. Old Navy’s growth is accelerating as the brand enters new categories like Intimates, where it is already in the top 20 brands. Meanwhile, the new team at Banana Republic is reinventing this brand with an accessible luxury theme that customers love.

Regarding the company’s namesake, Syngal noted that The Gap is one of the most recognizable brands in the world and that they make it big with beautiful, contemporary designs that offer a great fit and value for money. Like Old Navy, Gap is entering new categories with its recent partnership with Walmart ((WMT) – Get the reportwho will write a new chapter for Gap Home.

Syngal concluded by stating that while their businesses are important, their digital offerings are also important. They promised more to come as they create better customer experiences in both channels.

Executive decision: Williams-Sonoma

In his next “Executive Decision” segment, Cramer continued his retail topic by speaking with Laura Alber, CEO of Williams-Sonoma ((WSM) – Get the report, the high-end retailer that just made a monster profit of $ 1.09 per share.

Alber said Williams-Sonoma is growing not only because the economy is opening up again, but also because many of the initiatives they launched during the pandemic are ahead of schedule. Brands like West Elm still don’t have enough brand awareness, Alber said, but once everyone has discovered the brand, sales could double.

Alber rejected the idea that sales will gradually decline after the economy reopens. She said customers will still need many items and gifts for back to school, college, weddings, holidays, and more. When you see people in person, bring them great gifts, she said.

Williams-Sonoma is also gaining ground in commercial space. Alber noted that not many retailers can offer you the full package, but they can both design and customize commercial space and give you everything you need.

Executive decision: HP

In another “Executive Decision” segment, Cramer also checked in Enrique Lores, President and CEO of HP Inc. ((HPQ) – Get the report, the computer and printer manufacturer preparing for the world to return to the office.

According to Lores, HP expects a hybrid world once the world’s economies open up again. This means a strong demand for HP PCs, laptops and printers in both the home and office. Demand from printers has already increased, he said, with consumer printing increasing 70% and commercial printing 40% in the quarter.

When asked about 3D printing, Lores stated that HP is expanding its presence in space. They are moving from providing hardware and consumables to providing end-to-end solutions for what their customers demand.

Regarding HP’s share price, Lores said they continue to view their shares as undervalued given the strength they see, which is why they will continue to buy back shares at every opportunity.

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Executive decision: Mondelez International

For his final “Executive Decision” segment, Cramer checked in Dirk Van De Put, Chairman and CEO of Mondelez International ((MDLZ) – Get the report, which today announced the acquisition of European brand Chipita for $ 2 billion.

Van De Put first spoke about the Mondelez approach to environmental and social policy (ESG). He said they are taking a nuanced approach, focusing only on those areas where they can have a large, measurable impact. In other areas, they are open to working with partners and governments to get the job done. In both cases, however, it is important to take an integrated approach, where profit and responsibility go hand in hand.

Regarding the Chipita acquisition, Van De Put said the deal gives Mondelez access to a $ 65 billion market in cakes and pastries and is the perfect complement to their other brands across Europe.

When asked about the snack trend, Van De Put said he thinks snacking will stay here. People prefer snacking and eating smaller meals, he said, and snacking will hit the streets again as mobility increases.

Lightning round

Here’s what Jim Cramer said about some of the stocks callers offered during Thursday night’s Mad Money Lightning Round:

Clean energy fuels ((CLNE) – Get the report: “This one ran out of gas. We’re not switching to natural gas.”

stem ((STEM) : “Handle is good. I am not withdrawing from this one.”

LKQ Corp. ((LKQ) – Get the report: “I’ve liked LKQ for a long time.”

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At the time of publication, Cramer’s Action Alerts PLUS had no position in the stocks mentioned.

Snowflake CEO urges buyers to be affected person with inventory throughout cloud transition

Frank Slootman, CEO of Snowflake, said Wednesday that shareholders will have to be patient with the company’s stock as the cloud transition won’t happen overnight.

“Our business is really going to be real for significant, long periods of time,” Slootman said in an interview with CNBC’s Jim Cramer on “Bad money.” “This is kind of a message to investors to really understand that we are signing up for a trip here that will last five to ten years.”

The comments came when Snowflake’s shares fell as much as 8% in post-company expanded trading reported first quarter results.

While revenue rose 110% year over year to a better than expected $ 228.9 million, the data analytics software company also posted a net loss of $ 203.2 million. That’s an increase of $ 93.6 million over the same period last year. At the same time, Snowflake has raised its full-year forecast for product sales.

Snowflake went public in September a record-breaking IPOThe shares close this first day of trading at $ 253.93. However, the stock was below that level at the close of trading on Wednesday. Snowflake shares have also fallen 16% since the start of the year as investors moved from high-flying growth names to economically sensitive companies that can benefit from Covid’s rebound.

Despite recent moves on Wall Street, Slootman emphasized that the company’s software becomes increasingly important as companies move away from databases that are tied to hardware.

“These are big, big changes we’re seeing in the marketplace and we’re just super happy to be in the thick of it and make it possible,” he said, adding that Snowflake has its focus on large-scale growth. “We are not a company that grows at any price.”