Everything Jim Cramer said about the stock market on 'Mad Money,' including Saudi oil strikes, valuing cloud stocks and Saudi Aramco's IPO
- CNBC's Jim Cramer breaks down the stock market's reaction to the drone attack on Saudi Arabia's oil infrastructure.
- The "Mad Money" host reveals how investors can properly value cloud stocks and spot the ones to add and remove from their portfolios.
- He interviews the chief of Paxos, which launched a cryptocurrency for investing in gold.
The market would react to Saudi Arabia's oil shock much differently 10 years ago
The stock market barely flinched after a coordinated attack on the world's largest oil producer over the weekend because the United States economy is vastly different from the one it was a decade ago, Cramer said.
Thefell 0.52%, or 142.70 points, thetraded down 0.31%, or 9.43 points, and theslipped 0.28%, or 23.17 points, after a drone strike on Saudi Arabia's oil industry knocked out 5.7 million barrels of crude production out of Aramco facilities. That equates to about 50% of the kingdom's oil output.
The "Mad Money" host argued that a lot of stocks on Wall Street can perform better with higher oil prices and others that can do well if those prices cause the economy to slow. That helped prevent the market from seeing even more carnage during the session.
"I know this stock market's resilience could melt if the White House decides to make an all-out strike against Tehran," Cramer said. "But, man … it's amazing how the averages pretty much shrugged off such a major [oil production] decline, something that would've been totally impossible to even think about a decade ago, and that's worth keeping in mind."
Tools Wall Street experts use to value cloud stocks
Cramer revealed "quick and dirty" tricks that investors can use to assess enterprise software stocks like a Wall Street expert.
High-flying cloud equities have taken double-digit hits in recent weeks due to the rotation from secular to cyclical investments. Because of this, thehost warned it's time to be "more selective."
"When you make these kinds of decisions, you need to be ruthlessly logical, not emotional … We're in triage mode, and that means we need to be as objective as possible," he said. "We're going to run our whole cloud universe through these two filters — one is for fundamentals, one is for valuation. Anything that passes both filters, well then you've got my blessing buy down here after the big sell-off."
Be careful buying Cloudflare
Shares of web security company Cloudflare are up more than 20% from its $15 IPO, closing at $18.63 on Monday. Cramer, however, is skeptical.
"Based on Cloudflare's inconsistent results over the past eighteen months, the stock's just too risky for me, especially in a market that no longer worships at the altar of the cloud," he said.
Bringing cryptocurrency to gold
The digital age is reaching all corners of business, and one New York start-up is offering a secured way to gain exposure to gold by tethering the yellow metal to cryptocurrency.
Paxos, a privately held financial institution that provides a way to move between physical and digital assets, has launched a tokenized version of the precious metal called PAX Gold. CEO Charles Cascarilla, who co-founded the firm in 2012, told CNBCthat Paxos is a safe platform for both individual and institutional investors to buy the commodity.
"We're really a technology firm at heart, and so we're trying to give you the confidence of a bank, but the innovation of Silicon Valley," he said in a sitdown with Cramer. "And that's just different from, I think, most institutions that are in the banking world today."
Gauging Saudi Aramco's IPO
Cramer broke down why he thinks it's unlikely that investors will get a reasonable price for Saudi Aramco's IPO and how the market could get hammered the day it comes public.
Cramer's lighting round
In Cramer's lightning round, the "Mad Money" host zips through his thoughts about callers' favorite stock picks of the day.
: "I think it's within 10% of a bottom. I've been wanting to wait — I wanted to wait until we see the next quarter, but I'm O.K. with. Count another 20 points and I'm fine with it."
Davita: "I think it's a very, very good company. It's down a lot from it's high, but it's profitable. It's not expensive. I'm going to say buy to Davita."
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