Analysis: WMT AMZN TTWO

In today's Daily Rundown, Jim discusses the latest market action, earnings from Walmart (WMT) , Amazon's (AMZN) reported interest in the movie studio MGM, and Take-Two Interactive Software (TTWO) .

KATHERINE ROSS: This is the Daily Rundown. It is Tuesday, May 18th. I'm Katherine Ross and I'm joined by Jim Cramer. Jim, we've got the Dow down very slightly, the S&P up very slightly, and the Nasdaq kind of leading the three. So what's the key to the market for members?

JIM CRAMER: Look, I think that we had a program out of Nasdaq yesterday. Now the program's in the Nasdaq. And you have to recognize what a program is. A program is just someone just saying, OK, listen. We're going to put our money in the NAS. Maybe we'll keep this stock out or that stock. But it's working. It's working beautifully. And it's moving up all the Nasdaq stocks as if there was something positive happening to them, which there isn't.

KATHERINE ROSS: OK. There's one earnings report that I've been really anxious to hit on with you, Jim. And that's Walmart. Because they did beat on our expectations due to the stimulus checks that we received and the consumer spending and improved their full year outlook. I mean, this earnings report, what did you make of it?

JIM CRAMER: Well, it shows you the power of their grocery business. Running some nice pictures of the grocery business. When you go to your Walmart, I think you're really surprised at how special the supermarket section is and the low prices. But you have to go to Walmart. And a lot of Wall Street snobs don't go to Walmart.

I was in Walmart buying some hats and some jackets the other day. And the prices are monumentally low. I mean, they are just so low. And I wanted to get something to fish with. And, you know, their prices are unbeatable. I mean, the problem is that a lot of people feel that the quality's not that good. I don't find that to be the case. I just think it's good value.

KATHERINE ROSS: Well, and Jim, what's really interesting is, my sister's very into TikTok. I personally-- I'm not on the app. But, she'll send me all these like Lululemon knockoffs that Walmart has and whatnot. And they're a quarter of the price. So it does seem like they're really anecdotally boosting the quality, if it's trending on TikTok.

JIM CRAMER: They are. I mean, you know, you'll find a lot of things. One of the jackets I bought, my wife said looked good. I couldn't believe she noticed it. And I said, I got it at Walmart. Now she bought a table at Walmart. And I thought the table looked good. You know, so there's been quite a lot of shopping at Walmart because it happens to be near the house we bought. And I've been there about a half dozen times. I like it. I like it very much.

I think that it's kind of one stop shop. It's got all sorts of things in all different aisles. Really good for sporting goods. We don't have a Dick's around us. And I would just comment that before people poo-poo it, they should go to it. And that's one of the reasons why we own the stock for Action Alerts, for the Charitable Trust. Because Walmart's really good. I buy my--

KATHERINE ROSS: Well, and Jim, that used to be-- that used to be the name of the game, right? When you were going to kind of analyze how a stock was doing, especially retail, you'd go to the retailer itself or the big box store to kind of see what the consumers are interested in. It doesn't seem like that's happening as much anymore.

JIM CRAMER: No, it's not. Because we've been brainwashed by people like Warren Buffet that we can't pick stocks. And yet, what they're saying there is, mutual funds, hedge funds, they have too much money. So they can't do as good a job. I'm just saying, listen. A young person with eyes, and Google, would learn about how well Walmart's doing if they went.

I mean, but you have to go. I mean, when I go to Ross stores, it's pretty good. TJX is pretty good. Burlington, very good. You know, I like to look at these places and see the lines and talk to people. And it's a great way to learn. You got to learn.

KATHERINE ROSS: So let's talk, just briefly, Jim, about Amazon reportedly being in talks with MGM, which is the studio, for about $9 billion, or so the information has reported, and so has Variety. So this could boost Amazon up to being a competitor against other streaming services. We talked about this briefly over on The Street Live. They're so dominant in so many spaces already. I mean, do you think that this just adds to that Morgan Stanley note that we saw yesterday, saying that in 12 months, we could see this share at this stock at 4.5?

JIM CRAMER: Well--

KATHERINE ROSS: $4,500, I should say.

JIM CRAMER: I thought that was a great bull case. They actually were kind of making that the bear case. They think it could go to $5,000, $6,000. Look. I think Amazon had a great quarter. And people forget because it was reported right when they decided to take the whole cohort to the woodshed.

And there are a lot of people who just feel like, look, it's FAANG. And I don't want anything to do with FAANG. And FAANG is ridiculed. I don't know. I think that I'll take the-- I'll take that game. I mean, Amazon up another 26 points. It is almost at $4,000. I think that Amazon-- I mean, I say it's almost, it's got to go 7 hundred points. But, it can do 7 hundred points at this pace.

I do think that Amazon represents great value. And I just want to-- with or without MGM.

KATHERINE ROSS: So, we're going to hear from Take Two tonight. Their earnings report is coming out. Now, this stock has been a laggard year to date because of all the hot takes that video games will lose the momentum as we reopen. You know how I personally feel about this, Jim. I think that we've got to wait till the winter to really see what this video game space kind of shakes out to be. But this is one of the smallest positions in the portfolio. So what are you going to be watching in this earnings report?

JIM CRAMER: Well, I need to see, first of all, that some very good early feedback on the fact that on just the general sales and how they're doing without any new releases. I do think that they better talk about Grand Theft Auto doing well. And Red Dead Redemption doing well. Maybe something new do well. But they have-- maybe WWE. But they've got to get some more stuff going. And they got to get more people hooked.

KATHERINE ROSS: And finally, Jim, what kind of conversations are you going to have with Jeff and Zev today?

JIM CRAMER: Well you know, we're going over whether, you know, how good is Walmart? How good is Union Pacific? Whether we can buy Estee Lauder, because it's down a little. How Wynn rallied three, because we were trying to buy Wynn yesterday. We're just-- we're itching to buy things. We're just looking for things to come to our level. And so far, they haven't.

KATHERINE ROSS: All right. And with that, Jim, I hope that you have a great day. And members, I hope that you too have great days. So thank you for joining us today. I'm Katherine Ross. We'll see you tomorrow.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long WMT, AMZN, TTWO.