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.

Cramer and the AAP team look at everything from revenue and politics to the Federal Reserve. Find out what they have to say to their investment club members and have fun with a free trial subscription to Action Alerts Plus.

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.

Sonos CEO expects to capitalize on the ‘golden age of audio’ to promote extra house leisure gear

Sonos CEO Patrick Spence said on CNBC Thursday that the company is tracking three worldly trends that he expects to maintain growth momentum after the coronavirus pandemic.

“The first is the golden age of audio. We’re in,” he said in a “Bad money“Interview with Jim Cramer.

Streaming music has become the norm thanks to services offered by the likes of Spotify and Apple. Their platforms have made music and podcast content easily accessible with a tap of a finger.

Spence also anticipates the rise of social audio such as Clubhouse and Twitter Rooms to upgrade Sonos’ speakers and home sound systems.

Sonos also plans to take advantage of the growing amount of video content being sent direct to the consumer, such as: B. Movies and TV shows broadcast by Netflix and other streaming companies. A number of films, such as “The Trial of the Chicago 7” and “Mulan,” bypassed theatrical releases last year when Covid-19 was banned.

“We expect it to stay that way,” said Spence. “More films are released right at home, more people are enjoying it at home.”

Meanwhile, Sonos sees opportunities in a real estate market that has grown hot during the move to remote working. Spence is counting on the “big reshuffle” to get more consumers to buy home entertainment systems.

“A lot of people who now have new flexibility and freedom to work anywhere, and that’s why they’re moving, building a new home, and that’s perfect for Sonos,” he said.

The comments come a day after Sonos reported its fiscal second quarter results. The Santa Barbara, Calif. Based company saw total sales increase 90% year over year, primarily due to speakers.

The stock rose 7% on Thursday to close at $ 33.83 per share.

Fascinated about shopping for inventory in AMC Leisure, Vertex Vitality, Sonos, Multiplan Corp, or Aemetis?

NEW YORK, May 13, 2021 / PRNewswire / – InvestorsObserver issues critical PriceWatch alerts for AMC, VTNR, SONO, MPLN, and AMTX.

To see how InvestorsObserver’s proprietary rating system rates these stocks, check out the InvestorsObserver’s PriceWatch alert by selecting the appropriate link.

(Note: you may need to copy this link into your browser and then press the button [ENTER] Key.)

InvestorsObserver’s PriceWatch alerts are based on our proprietary valuation method. Each stock is valued based on short term technical, long term technical and fundamental factors. Each of these ratings are then combined into an overall rating that determines a stock’s general suitability for investment.

SOURCE InvestorsObserver

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