Analysis: CRM COST AAPL AMD

In today's Daily Rundown, Jim discusses the markets, earnings from Salesforce  (CRM) and Costco  (COST) a rare downgrade of Apple (AAPL) , Advanced Micro Devices (AMD) , and more!

KATHERINE ROSS: This is The Daily Rundown. It's Friday, y'all. It is May, 28, the final day of May for trading anyway. And with that, Jim, what are you watching in the markets?

JIM CRAMER: Well, look, I think that Salesforce is incredibly important in this market, because it was the best quarter. Marc said it, best quarter the company's ever had, bountiful operating cash flow, tremendous number of orders coming in.

And the conclusion of the Slack deal will be upon us. And after MuleSoft, after Tableau, the stocks flew. OK, after Exacttarget, the stock flew once the deal closes.

So I think people are getting in ahead of that. They haven't missed anything if they buy it here. Right now buy half, and then buy half if it comes in.

KATHERINE ROSS: I want to talk a little bit about that quarter. Because I think that my question to you this earnings season-- I've heard myself repeated it time and time again, Jim, is whether or not companies can keep up this momentum. So with Salesforce, do you think that they can?

JIM CRAMER: Oh, yeah, definitely. I mean, I think Salesforce has positioned itself with this 360 to sell more and more data, more and more the way to do things. Is quite impressive. And I always marveled when we brought Salesforce in at The Street, what a lift it gave us.

And I think it's going to do that. It gives everybody a lift. It's what it does.

KATHERINE ROSS: I was thinking a lot about Salesforce last night after earnings obviously, and the closure of this Slack deal, Jim. And it made me start to wonder if the Slack deal is kind of a pill for investors, and once they swallow that pill, once it's finalized and they've been fully integrated, if investors will, therefore, see the positivity that this deal could give Salesforce?

JIM CRAMER: Yeah, I just don't think it's getting credit for it. The deal is brilliant in the sense it integrates a whole new system. And it's a blocking element against Microsoft Teams. They go head to head.

But Marc needed something like this in order to be able to coordinate everything.

KATHERINE ROSS: Yeah, and it's definitely-- I like what you said there about the Microsoft Teams. I think that this really sets Salesforce up as more competitive against them, instead of the risk of being overrun by them.

JIM CRAMER: Exactly.

KATHERINE ROSS: Because Microsoft is sitting here and looking at making many deals. I mean, we've talked about them time and time again, from Discord to other discussions that they've had with companies. But with that, let's turn our attention, Jim, to Costco. Because they also beat on earnings. And the company also announced plans to accelerate the pace of new warehouse openings to 25 a year over the next two years.

What was the biggest thing that stood out to you in both this report and the conference call?

JIM CRAMER: Well, I mean, look, the conference call is ideal. Rich Galanti always runs the straight conference calls. Very easy to understand. You just got to put pen to paper, and he'll give you the answers.

He does it in kind of a whimsical way. But he gets everything done. And the theme of it was really inflationary goods. And that's a problem. That's why the stock's going down 6, though. And I think that when it settles, you should buy it.

KATHERINE ROSS: Well, didn't you say on CNBC this morning that you-- what was it? You didn't want Fed Chair Powell to read it or to listen to it? Or did you want him to?

JIM CRAMER: Yeah, it's just too much talk about inflation. And they have been really hurt by inflation. But you know, and the grain complex, and in the complex that brings in the freight, they've just been hurt on pretty much everything.

And they're not complaining. They just move prices up a little bit, and they're fine.

KATHERINE ROSS: Do you think that the market's kind of digested all this talk around inflation? Or is this kind of just not reacting yet?

JIM CRAMER: Well, I mean, you know, what's going to react-- will react first are government bonds. They

will be the bellwether about what's going to happen. And interest rates are going down today. So what can I say? I mean, I feel interest rates might have peaked.

KATHERINE ROSS: It definitely feels a little bit like whiplash. Jim, Apple was slapped with a rare sell from New Street Research, with the analysts saying that the recent iPhone cycle pulled forward too much demand, and that the 12S will be a down cycle.

I don't think I have to ask you if you agree or disagree with this note, cause I feel like I know what you're going to say, but what did you think of this note?

JIM CRAMER: What the hell is he talking about?

KATHERINE ROSS: That is exactly what I thought you were going to say.

JIM CRAMER: This-- I mean, I don't know. Maybe he's going to buy crypto. I have no idea.

KATHERINE ROSS: All right, let's move on to AMD then, because AMD is on the move following a benchmark, initiating coverage with a $100 price target. So what did you make of this initiation? And you like AMD here, correct?

JIM CRAMER: Yeah, yeah. I thought initiation was great. AMD at $80 is such a buy. They're going to do-- I mean, the thing is selling at remarkably low times earnings if they get everything right.

It's back to $80. It took a long trip all the way back to the low $70s. And I thought that it was bottoming there. I wish I had another-- I don't know. I mean, I wish I had more of it. I just wish I had more AMD.

KATHERINE ROSS: I'm still smiling, Jim, because after that Apple question, the one thing that-- I don't know if the members feel this as I do, but this show is so much fun to do with you, because you're always unfiltered. And you just get this side of you that is the very blunt, very honest Jim Cramer.

JIM CRAMER: Oh, yeah. Oh, yeah, especially with the meme people, right?

KATHERINE ROSS: Yeah.

JIM CRAMER: WallStreetBets.

KATHERINE ROSS: And with that, Jim, I want to get to your unfiltered conversations with Jeff and Zev

ahead of your vacation next week.

JIM CRAMER: Well, I worried that I wanted to get more Estee Lauder in, because Ulta was so great. But we can't do that. The discipline says we can't do that, because Estee Lauder's up 2.5. We have a much lower basis. It would ruin our basis.

That was one thing we brought up. I wanted to bring up Bristol Myers, because I'm tired of it. But I decided to hold off, because they still are capable of doing something amazing. And you got a 3% yield to wait. And those are the ones I'm focused on.

KATHERINE ROSS: Well, and I also got a DM this morning from an Action Alerts Plus member. And I really enjoy-- I want all the members to know, I really do enjoy hearing from you guys, and seeing what topics and questions that you guys have. Although, please do keep sending-- emailing them in to Jeff and Zev.

But this member wanted to hear a little bit more about Eli Lilly, Jim. Do you have anything to say on that stock here?

JIM CRAMER: It was at 201. We battled it. We bought it too high because of the Alzheimer's. And then we managed to buy it really low, which was good.

And then we sold off some of the high basis stock, not nearly enough. I was literally going to ask Regina about whether we just mention the stock or not? Because you know, I've got the rules.

Because I remember Eli Lilly is being investigated by like the Justice Department right now. And I think I've mentioned that. And my rules are, you can't do anything if I mention it on Mad Money.

But I don't--

KATHERINE ROSS: Yeah, you're withheld.

JIM CRAMER: No, I do not think it's a buy. I just don't want to-- I think I can get a higher price. It'll go up.

KATHERINE ROSS: Well, there you go. All right, Jim, I want to let our members know that you and I will be off. You're going to be off all week next week. And you deserve it.

JIM CRAMER: Yeah.

KATHERINE ROSS: You need a break.

JIM CRAMER: My first non PT work. I mean, when I had my vacation in March, it was just all PT.

KATHERINE ROSS: It wasn't a vacation, Jim. It was you being off because of a--

JIM CRAMER: I was declared out of PT this morning. I'm very excited.

KATHERINE ROSS: Congrats, Jim. Congrats.

JIM CRAMER: Thank you.

KATHERINE ROSS: All right, and with that, members, we will be back on Wednesday. Jeff Marks, senior portfolio analyst to Action Alerts Plus will be joining us next week. So look forward to that.

I'm Katherine Ross. And please, enjoy your holiday weekend. We'll see you on Wednesday.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long CRM, COST, AAPL and AMD.