He also provides a lesson learned from the Mastercard (MA) /Visa (V) dynamic, some thoughts on where investors need to look in this market for opportunities and answers a member's question on Marvell Technology (MRVL) !
KATHERINE ROSS: This is The Daily Rundown show. It is Thursday, April 29. I am Katherine Ross, and I am joined by Jim Cramer. Jim, for members today, what is the key to this market?
JIM CRAMER: Apple's got to hold. It has to hold. Apple cannot go down. If Apple goes down on this quarter, than anything can go down. And so I am watching that stock like a hawk, just seeing if it can hold the 133 level. If not, then no stock is really safe today.
KATHERINE ROSS: So before we dig into Apple, I do want to dig into Facebook, which did have a blowout quarter, and guided for stable revenue with perhaps modest acceleration. But after this quarter, Jim, how are you approaching this name? Can they keep this momentum up?
JIM CRAMER: Yeah, I mean, I think Facebook is game, set, match when it comes to large advertising. I mean, Amazon's good and Google's good, but Facebook turns out to be extraordinary. And I think that the pandemic got many people hooked on it.
I mean, there were so many people who objected to Instagram and Facebook, if you remember the old days. Those all seem-- those seem to be forgotten. So Facebook's one that can actually be up through this sell onslaught that we're seeing right now.
KATHERINE ROSS: So let's circle back to Apple. I'm looking at the stock price right now. It's actually-- it's up very small to $134.10. Jim, this was a very impressive quarter. And they're doing the $90 million buyback.
Based on conversations that I've had with Zev Fima, I wanted to ask about the M1 chip. And I wonder if you think that this could lead to a major upgrade cycle for Macs, iPads, and 5G iPhones?
JIM CRAMER: Yeah, it could, but what matters here is that Apple has tremendous clout. They have good sales in China too. If anybody can get chips, it's Apple.
But I do worry that this market has had it with success. Just like the present, had it with success. Success is a black eye right now. And so you have to buy something that's not perceived as successful that could get to successful. That's what you have to look for right now.
And I'm not talking about like buying a housing stock or anything. I'm just talking-- you know, you got to just go with something that you really love.
I mean, here's a good example. Boeing, OK. Boeing's down again. It's at 230. We do this stock contest today. And I was tempted to buy the stock of Boeing as part of the contest, cause I think the stock could be up $100. So looking for weakness in stocks that could have giant moves today.
KATHERINE ROSS: I wonder if you think-- it can't make a giant move today based on the chip shortage that it's facing, but Ford. I mean, this was an impressive quarter. They are showing that they can really build back. But is this a time to really buy on weakness if you believe in this long term story?
JIM CRAMER: Absolutely. And I'd also like GM too. These are EV companies that also have non EV. And Ford is a small, mid-sized business recovery stock. It is entirely because of this chip shortage.
I mean, the company would have put up an unbelievable number if it weren't for the chip shortage. So I say, how can you avoid-- how can you not buy Ford, or GM for that matter? Well, GM hasn't guided down yet.
Given the fact that we know that the reason why they're not doing that good a job is because of this one, you know, semiconductor. So they'll get the semis, and then the numbers will come through.
KATHERINE ROSS: Well, another sector that's suffering right now, that seems to be suffering at least based on their earnings, is drug stocks. I mean, their first quarter earnings haven't been super great. And Bristol-Myers is no exception here, Jim. So with this quarter, do you buy on weakness, or do you put this name on the chopping block?
JIM CRAMER: Bristol-Myers is now 3% yield. Jeff, Zev, and I are going back and forth, and back and forth, and back and forth on this. We have not made a decision yet. I think there's a lot to selling it.
I don't see, for us, a need to buy. And I think obviously others don't see a need to buy. So I'm just trying to figure out whether to sell it or not.
KATHERINE ROSS: Let's talk about another stock that you sold yesterday. And that's MA, MasterCard. You teased this on the show actually before we even got the alert. So Jim, what's the lesson here for members since you pulled the trigger on the back of the Visa print?
JIM CRAMER: Well, stocks run in anticipation. Yesterday we saw Visa run. And we said, darn it all. What we're going to do is we're going to take advantage of the Visa run, and we're going to sell the stock at a higher price than we should have.
Well, sure enough, they report a breakout quarter. The stock's up 6% at 9 o'clock. I mean, well, actually about 8 o'clock. Then it's up 3%. And then when it opens, it's barely up. And now, look at it. It's down 10%.
We did the right thing. We anticipated it. And we sold MasterCard at a really great price.
KATHERINE ROSS: Mike asks, if you don't have any Salesforce or Marvell, should we be buying at this current level?
JIM CRAMER: Marvell, yes, absolutely. I have no problem buying Marvell. They're moving to the cloud. They obviously have tremendous 5G. I like Marvell very much. You know, that's about it.
KATHERINE ROSS: Jim, normally I'd ask you what kind of conversations you're having with Jeff and Zev right now, but I think that we covered a lot in this short amount of time.
JIM CRAMER: Sure.
KATHERINE ROSS: So instead I want to ask you, with this gauntlet that you've been talking about for the past couple of days-- we're coming to the end of it-- what do you want members to know?
JIM CRAMER: I want you to look at stocks that are down a lot, and make decisions about whether they should be down a lot. I mean, should ServiceNow be down 40? I say, no, ServiceNow was not that bad.
If you can find the ones that are-- if you can soul search your portfolio and find your Union Pacific, as we did, you're going to have winners. I believe that we're going to hold here. But I also want to own stocks that are only winners. And right now the winners are retail.
So if you want to get to work here, buy a retailer, because they're coming on very strong. I would even buy-- just go buy Costco for a trade.
KATHERINE ROSS: All right, let's end there. Thank you, Jim, as always, for joining us. And I know that you, Jeff, and Zev have been working so hard. And it doesn't stop here. So thank you guys for all the work that you do.
And members, thank you for tuning in today. I'm Katherine Ross, and I'll see you tomorrow.