Analysis: DIS PANW FB

In today's Daily Rundown, Jim discusses Disney (DIS) and what is expected to be a big 2019 year, another analyst upgrade on Palo Alto Networks (PANW) (recall we discussed in our Alert here how the stock received two upgrades earlier in the week), Facebook (FB) and Instagram Stories, the semiconductor industry, and more!

Plus, he answers a club member's question about what books a new investor should start with.

Katherine Ross: Good morning, y'all. I'm Katherine Ross with Action Alerts PLUS. I'm here on the floor of the NYSE with Jim Cramer.

Jim Cramer: Club has had some good ones. You know, we took a little trimming in Five Below.

Katherine Ross: I was going to ask about that.

Jim Cramer: And then Palo Alto, we had our third upgrade this week, PANW.

Katherine Ross: It's been going really well for you.

Jim Cramer: Yeah. Working on ... thank you ... we had a bullpen name that we used on our call, but it hasn't come in yet and we're reluctant to just ... we won't just buy for the sake of buying. Some of these stocks are really flying. But yeah, we've had some good ones. Our conference call's holding up pretty well, even though it was a long time ago.

Katherine Ross: What about this Morgan Stanley note about Disney?

Jim Cramer: I love that. Now I was talking to my colleague, David Faber, it's the April meeting where they lay out things. Ultimate Fight Club, which I'm not involved with, they had huge signups on ESPN Plus. I do think the ESPN Plus is turning into being a success. We don't hear about ESPN going down anymore. I think Disney, if they can do something with the regional sports networks can be really good. The piece is good. The Morgan Stanley piece is good. It's just why you should buy it, and buy it ahead of the meeting. I agree with that. We have a pretty full position. We bought some of it during the big tsunami of selling.

Katherine Ross: Morgan Stanley's title was actually Big Year Ahead for Disney, which implies a lot of greatness ahead.

Jim Cramer: It's a good note when we see that or when we see the Palo Alto, we feel good. Look, we're like everybody else, when we tell people to buy, that we like the stock, and then we get our third upgrade hold to buy Palo Alto, yes, we feel like our work is being confirmed, okay? That Disney piece makes our work feel confirmed.

Katherine Ross: Deutsche Bank had a note out on Facebook saying that Stories ads have been a success.

Jim Cramer: Okay, so Facebook yesterday got raided. We don't know why it got raided, but it got raided. It just got clubbed, okay? Now my hedge fund would've bought it, because there was nothing, alright? There was nothing bad. And no one had anything. That note came out and it proved what I keep saying, which is that Instagram is saving Facebook. Did say that Facebook is going to have a not-great quarter. It did say that this ... last ... the one that's gonna be announced, did say they didn't think this quarter is gonna be that great, but Instagram Stories ramping will be. You know, I was at a Zuora dinner last night with Margaret de Luna who is our president at TheStreet, and two people introduced themselves to me as influencers. "Hi, my name is so-and-so, I'm an influencer." Now what is an influencer? Well, an influencer is somebody who obviously sets the tone, and where do the influencers proselytize?

Katherine Ross: Instagram.

Jim Cramer: Instagram Stories. And I just think it's bigger than ever. Now I just wish the people who ran Facebook weren't such jerks, okay? We should lean out from them. No one ever took the fall, I don't like that. But when you meet someone who's an influencer, it's Instagram that's driving it. And this is the next wave. So what happens is, if you're an influencer, you try to develop a product, you need Zuora in order to be able to do subscription. They do subscription at The Street, that's why it was great the teams who put all these influencers together, I was with an influencer here, an influencer on this side ... it was very exciting.

Jim Cramer: And they just are ... Instagram is their method of operation. So I like Facebook, but I recognize this quarter's gonna be bad. But you know what? The stock has come down a lot. This quarter is gonna be bad, maybe it does like what Texas Instruments did. The quarter was bad, the stock went up.

Katherine Ross: Let's also talk about the semiconductor space because right now, we're seeing a lot of movement. Kevin Curran is writing about it because Intel is our Real Money Stock of the Day and we're seeing ... you mentioned this in our Facebook Live video, but we're seeing all these stocks, Texas Instruments, gain instead of fall.

Jim Cramer: Okay, well ASMLF went down ... had really bad numbers. That's semiconductor equipment. And the stock went up. That was the first tell. The second tell was Xilinx saying that 5G is really in play, and that they have ... defense is doing well, autonomous driving is doing well, artificial intelligence is doing well. So there you have it. And Data Center too. So check, check, check, check. And some of those are Intel derivatives.

Jim Cramer: And then you had Lam Research calling the bottom in the actual conference call. Money speaks louder than words. Buying $5 billion worth of stock, their order book is now better.

Jim Cramer: So I've always been telling people, "Look, these stocks peak before the business peaks, and they bottom before the business bottoms." And that's what's happening right now, which is that these companies are bottoming. The stocks are bottoming. And Texas Instruments which did not have a good quarter, it is being portrayed as some company that that was the last bad one. Even though a lot of it is housing and auto.

Jim Cramer: Intel looks a lot more like Xilinx than it does Texas Instruments. So it's kind of interesting.

Katherine Ross: I definitely want to talk to you about the airline sector probably on tomorrow's Facebook Live. But I want to give members a kind of-

Jim Cramer: Garrett Kelly. You know, we talked about Herb Kelleher and how great he was. And he was the CEO for many years, but was a constant contributor. The Southwest air number was substantially better than I expected. Especially with oil being cut the most in a long time. And we used to have that in our bullpen, then we owned it, then we made money, and then when it got through the 40s, we didn't pull a trigger. Our bad. That is some stock. And it's going to go up for a long time, that's how good that quarter was.

Katherine Ross: Okay, and so my final question for you is actually a member question. Dwayne has an 18-year-old grandson who wants to get into stocks and investing, but he's wondering what are one to two books?

Jim Cramer: Oh, one or two books?

Katherine Ross: One or two books.

Jim Cramer: One Up On Wall Street by Peter Lynch is really good. And then a really boring tome, Stocks for the Long Run by Professor Jeremy Siegel. Now the latter is a real hard read, okay? It's not as bad as Sydney Homer's Inside the Yield Curve, which is 500 pages, that they made me read at Goldman that I made everybody else read for punishment.

Jim Cramer: But Stocks for the Long Run has some very good analysis about why you should be in stocks, and One Up on Wall Street is still the best single book, Peter Lynch used to run the Magellan Fund, about how to identify good stocks with your eyes.

Katherine Ross: And Siegel is brilliant.

Jim Cramer: Yes, Siegel is brilliant. Now Siegel would be in more of the Bogel camp. Peter Lynch is more in the you can find the next Facebook, you can find the next Google. I am a mixture. I think that people should start out with Stocks for the Long Run and why they should own index funds, because that can measure ... those can capitalize on the progress in America. And then I want people to be able to use Peter Lynch to be able to pick individual stocks.

Jim Cramer: Now my view, there's a guy named Swenson, years ago he just beat the heck out of me in an introduction, mentioned of course ... Jon Stewart, because of course that's important for humiliation purposes. He mentioned that, even though I was humiliated on Jon Stewart, I still came out and kept talking about what I do. And that was the only thing that made sense about what Swenson said. Which is yes, I did. Because I've been humiliated so many times in my life, I say, "Get in line." That's part of life. And humiliation, you better understand how to deal with it, because you should stay humble. If people want to take shots at you, say "Go ahead." And Swenson took a shot at me, but he took a shot at me that was based on the idea that individuals couldn't pick stocks. And I worked at Goldman Sachs and I covered a lot of wealthy individuals, including wealthy partners at Goldman. And they continually had great success picking stocks. So I had eyes that told me what they were buying, I saw it, and they were far more right than wrong. So I'm more in the Peter Lynch camp but those are the two books that he should read. One Up on Wall Street and Stocks for the Long Run.

Katherine Ross: And I like that you gave a mixture. Alright, guys.

Jim Cramer: Yeah, I mean look, I can wax philosophic for a second. I know from the December mini crash the day before Christmas, that there another step down of people who are interested in what we do. People who are interested in joining the club, people interested in trying to figure out how stocks work. Another step down.

Jim Cramer: And am I being selfish by trying to get regulators to look at what happened that day? No. What I really want is a candid conversation among the exchanges, among the companies, and with the government, about what to do to help people understand what Jeremy Siegel says, by making it so that the market is a level playing field, and people don't think it's rigged.

Jim Cramer: And this is, like many things on Twitter, regarded as controversial. I mean, I often look at things and say, is it controversial to say that Bill Belichick is a great coach and the Pats are great? No. Is it controversial to say that we need a level playing field against the Pats, hence Brady and Brady-gate ? No.

Jim Cramer: I mean, my position is so non-controversial and people like to make things controversial that aren't. And they like to sling mud that aren't. And like I said, go ahead. All I'm gonna do is block you or call you Sparky. But this is a national emergency issue in the sense that we've corrupted the very thing that has made so many people money, and it has driven them away to CDs where you're never gonna get rich.

Katherine Ross: Or not investing at all.

Jim Cramer: Right. I wanna get people a chance to try to get rich. Again, people who don't have any money. I put IRA, I put money away for my kids Uniform Gift to Minors. And I'm very proud. I put a little bit every year. And I was shocked with what they ended up when they turned 21. I was shocked. But it's power of compounding. Let the money run, put the money in. I don't want that taken away. And so, I mean, am I on a mission? I don't know, I'm 63, I look at how corrupted the markets have gotten since the 2010 Flash Crash and I don't understand there's no outrage. Only I'm outraged. But I guess there's just tremendous ennui, tremendous negativity in the country. And if you read Stocks for the Long Run, you'll understand what I'm talking about.

Katherine Ross: And you know, Jim, I think that's a very important point. And I think that one of the things is that we need financial education for all.

Jim Cramer: Absolutely. That was dedicated ... that's what the club's about.

Katherine Ross: Yeah. Exactly.

Jim Cramer: Trying to educate and, you know, I'm not gonna stop. Now I think that the different exchanges and the different brokers should do more to educate. And I think many of them are concerned that it's too controversial. But you gotta help people. You gotta help people get involved.

Katherine Ross: I completely agree.

Jim Cramer: I mean, Robin Hood is helping people get involved. They're doing a major effort to get people involved. And I think that they have to be watched as a very forward-thinking outfit.

Katherine Ross: Yeah, and I sat down with M1 Finance's CEO which is another app that is also helping people choose.

Jim Cramer: Really?

Katherine Ross: So they can do passive or active or a mixture of both.

Jim Cramer: I'll tell you, that's interesting. I didn't know that. Hey, how was your interview with Sallie Krawcheck? I'm sorry I didn't get a chance to-

Katherine Ross: Amazing. She's amazing.

Jim Cramer: About women and just the discrimination. Because I was talking about it after I saw her with my wife, and she said, "How is it possible that there are no women who are as good as men at these [inaudible 00:11:01]?" You know, obviously being facetious. And yeah, I'm glad you got ... you're doing some breakthrough interviews. Congratulations.

Katherine Ross: Thank you, Jim.

Jim Cramer: Absolutely.

Katherine Ross: Alright, guys, we'll see you guys tomorrow.