Mad Money w/ Jim Cramer 6/25/24
Digest
Jim Cramer discusses the recent decline in the stock market, specifically focusing on the impact of Pool Corp's poor earnings report on the housing sector. He argues that the market is too focused on the consumer and that investors should instead focus on companies that are doing well regardless of the consumer's spending habits, such as Nvidia. Cramer also highlights the importance of owning stocks of good companies that are doing great things, even if the consumer is struggling. He emphasizes that he is not going to change his investment strategy to please those who want a broader market, and he will continue to stick with the stocks of the best companies, even if it means owning stocks that may at times move too high. Cramer also discusses the recent performance of Ollie's Bargain Outlet Holdings, a company that he believes is well-positioned to benefit from the current retail environment. He highlights the company's strong earnings report and its ability to attract both lower- and higher-income consumers. Cramer also discusses the pet industry, arguing that it is a secular trend that can triumph in any economy. He recommends three pet-related stocks: Chewy, Alonco, and J.M. Smucker. Cramer also discusses the recent antitrust ruling against Microsoft, arguing that it is a sign that the company may be becoming less innovative. He believes that competition is essential for innovation and that companies should be forced to compete and innovate to satisfy the needs of their users. Cramer concludes by discussing the importance of being aware of the risks associated with investing in Chinese companies, arguing that the Chinese economy is not as strong as many people believe. He also highlights the poor performance of many Chinese IPOs in recent years.
Outlines
Pool Corp's Poor Earnings Report
This Chapter discusses the recent decline in the stock market, specifically focusing on the impact of Pool Corp's poor earnings report on the housing sector. Jim Cramer argues that the market is too focused on the consumer and that investors should instead focus on companies that are doing well regardless of the consumer's spending habits, such as Nvidia. He emphasizes that he is not going to change his investment strategy to please those who want a broader market, and he will continue to stick with the stocks of the best companies, even if it means owning stocks that may at times move too high.
Ollie's Bargain Outlet Holdings
This Chapter discusses the recent performance of Ollie's Bargain Outlet Holdings, a company that Jim Cramer believes is well-positioned to benefit from the current retail environment. He highlights the company's strong earnings report and its ability to attract both lower- and higher-income consumers.
The Pet Industry
This Chapter discusses the pet industry, arguing that it is a secular trend that can triumph in any economy. Jim Cramer recommends three pet-related stocks: Chewy, Alonco, and J.M. Smucker.
Microsoft's Antitrust Ruling
This Chapter discusses the recent antitrust ruling against Microsoft, arguing that it is a sign that the company may be becoming less innovative. Jim Cramer believes that competition is essential for innovation and that companies should be forced to compete and innovate to satisfy the needs of their users.
Investing in Chinese Companies
This Chapter discusses the importance of being aware of the risks associated with investing in Chinese companies, arguing that the Chinese economy is not as strong as many people believe. Jim Cramer also highlights the poor performance of many Chinese IPOs in recent years.
Keywords
Nvidia
Nvidia Corporation is an American multinational technology company headquartered in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive markets. Nvidia's GPUs are used in a wide range of applications, including gaming, artificial intelligence, data centers, and automotive. The company is known for its high-performance GPUs, which are used by gamers, professionals, and researchers around the world. Nvidia's GPUs are also used in a variety of other applications, such as self-driving cars, robotics, and medical imaging. Nvidia is a leading player in the semiconductor industry and is one of the most valuable technology companies in the world.
Pool Corp
Pool Corporation is an American publicly traded company that distributes swimming pool supplies, equipment, and related products. The company is headquartered in Covington, Louisiana, and operates over 300 locations in the United States, Canada, and Mexico. Pool Corp is the largest distributor of swimming pool supplies in the world. The company's products include pool pumps, filters, heaters, chlorinators, and other pool equipment. Pool Corp also distributes a variety of other products, such as outdoor furniture, grills, and patio accessories. The company's customers include pool builders, retailers, and service companies. Pool Corp is a leading player in the swimming pool industry and is one of the most valuable companies in the sector.
Ollie's Bargain Outlet Holdings
Ollie's Bargain Outlet Holdings, Inc. is an American publicly traded company that operates a chain of discount retail stores. The company is headquartered in Harrisburg, Pennsylvania, and operates over 400 stores in the United States. Ollie's Bargain Outlet Holdings is known for its wide selection of closeout, overstock, and surplus merchandise at discounted prices. The company's products include a variety of items, such as home goods, furniture, toys, clothing, and food. Ollie's Bargain Outlet Holdings is a leading player in the discount retail industry and is one of the most valuable companies in the sector.
Chewy
Chewy, Inc. is an American publicly traded company that operates an online retailer of pet food, pet supplies, and pet medications. The company is headquartered in Dania Beach, Florida, and operates a network of fulfillment centers across the United States. Chewy is one of the largest online pet retailers in the world. The company's products include a wide variety of pet food, pet supplies, and pet medications, including dog food, cat food, pet toys, pet beds, pet grooming supplies, and pet healthcare products. Chewy also offers a variety of services, such as auto-ship programs, pet insurance, and veterinary care. Chewy is a leading player in the pet industry and is one of the most valuable companies in the sector.
Alonco
Elanco Animal Health Incorporated is an American publicly traded company that develops, manufactures, and markets animal health products. The company is headquartered in Greenfield, Indiana, and operates a global network of research and development facilities, manufacturing plants, and sales offices. Elanco Animal Health is one of the largest animal health companies in the world. The company's products include a wide variety of animal health products, including vaccines, pharmaceuticals, and parasiticides. Elanco Animal Health's products are used to treat and prevent diseases in a variety of animals, including cattle, pigs, poultry, dogs, and cats. Elanco Animal Health is a leading player in the animal health industry and is one of the most valuable companies in the sector.
J.M. Smucker
The J.M. Smucker Company is an American publicly traded company that manufactures and markets food products. The company is headquartered in Orrville, Ohio, and operates a global network of manufacturing plants, distribution centers, and sales offices. The J.M. Smucker Company is one of the largest food companies in the world. The company's products include a wide variety of food products, including jams, jellies, preserves, syrups, coffee, peanut butter, and pet food. The J.M. Smucker Company's products are sold in a variety of retail outlets, including grocery stores, convenience stores, and mass merchandisers. The J.M. Smucker Company is a leading player in the food industry and is one of the most valuable companies in the sector.
Microsoft
Microsoft Corporation is an American multinational technology corporation that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services. It is headquartered in Redmond, Washington, near Seattle. Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800. Microsoft's most popular software products include the Microsoft Windows line of operating systems, the Microsoft Office suite of productivity software, the Internet Explorer and Edge web browsers, and the Microsoft Azure cloud computing platform. Microsoft is one of the world's largest software makers by revenue and one of the most valuable companies in the world.
Octa
Okta, Inc. is an American publicly traded company that provides identity and access management (IAM) software. The company is headquartered in San Francisco, California, and operates a global network of data centers and sales offices. Okta is one of the leading providers of IAM software in the world. The company's products include a variety of IAM solutions, including single sign-on (SSO), multi-factor authentication (MFA), and identity governance and administration (IGA). Okta's products are used by a wide range of organizations, including businesses, government agencies, and educational institutions. Okta is a leading player in the IAM industry and is one of the most valuable companies in the sector.
Chinese IPOs
Chinese IPOs (Initial Public Offerings) refer to the process of a Chinese company going public by issuing shares to the public for the first time. These IPOs are often listed on stock exchanges in Hong Kong, Shanghai, Shenzhen, or even overseas markets like the New York Stock Exchange (NYSE) or Nasdaq. Chinese IPOs have become increasingly popular in recent years, as Chinese companies seek to raise capital and expand their businesses. However, there have also been concerns about the quality of some Chinese IPOs, with some companies accused of engaging in fraudulent activities or having weak financial performance. The Chinese government has taken steps to regulate the IPO market and improve the quality of listings, but challenges remain.
Q&A
What is Jim Cramer's investment strategy in the current market?
Cramer believes that the market is too focused on the consumer and that investors should instead focus on companies that are doing well regardless of the consumer's spending habits. He emphasizes that he is not going to change his investment strategy to please those who want a broader market, and he will continue to stick with the stocks of the best companies, even if it means owning stocks that may at times move too high.
What are some of the key factors that are driving the current retail environment?
Cramer highlights the impact of Pool Corp's poor earnings report on the housing sector, suggesting that the consumer is struggling. He also discusses the strong performance of Ollie's Bargain Outlet Holdings, a company that is benefiting from the current retail environment where consumers are looking for deals.
What are some of the risks associated with investing in Chinese companies?
Cramer argues that the Chinese economy is not as strong as many people believe and highlights the poor performance of many Chinese IPOs in recent years. He suggests that investors should be cautious about investing in Chinese companies, especially those that are heavily reliant on the Chinese economy.
What is Jim Cramer's view on the pet industry?
Cramer believes that the pet industry is a secular trend that can triumph in any economy. He recommends three pet-related stocks: Chewy, Alonco, and J.M. Smucker.
What are some of the concerns about Microsoft's business practices?
Cramer discusses the recent antitrust ruling against Microsoft, arguing that it is a sign that the company may be becoming less innovative. He believes that competition is essential for innovation and that companies should be forced to compete and innovate to satisfy the needs of their users.
What is Jim Cramer's advice for investors in the current market?
Cramer advises investors to focus on companies that are doing well regardless of the consumer's spending habits, such as Nvidia. He also recommends investing in secular trends that can triumph in any economy, such as the pet industry. He cautions investors to be aware of the risks associated with investing in Chinese companies.
Show Notes
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money.
Table of contents
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