Analysis: CRM MRVL TSM AEO AVGO

In today's Daily Rundown, Jim Cramer discusses the markets, Salesforce (CRM) earnings, Marvell Technology (MRVL) , Taiwan Semi (TSM) raising prices , American Eagle Outfitters (AEO) , Broadcom (AVGO) , and more!

JEFF MARKS: Welcome to The Daily Rundown, everyone. Happy Thursday. I'm Jeff Marks, Senior Portfolio Analyst at Action Alerts PLUS, standing on the floor of the New York Stock Exchange with Jim Cramer. Jim, let's talk markets before we get into the Salesforce quarter from last night. Seeing a little bit of a pullback today. What do you think is going on?

JIM CRAMER: Well, I really think the chatter is that this-- I hate to just add to the endless chatter about Jackson Hole, whether they're going to taper. What we have to stop caring about that. We have to go back and start realizing that are companies our portfolio is ready so that if that talk happens then it's going to be Wells Fargo that goes up and Morgan Stanley. But PayPal and Mastercard will go down. We'll be ready.

One of the things I talked about at the top of the show, rotation-- yesterday show-- rotation, rotation, rotation. When they throw out Mastercard and PayPal, you buy them. And then when they take up Wells Fargo, maybe at 57, 58, you sell. Sell some, at least. And that's what's going to happen right now. We have to say that's going to be the next 10 days.

JEFF MARKS: Yeah. And the replay of our monthly call is available on the site so check it out.

JIM CRAMER: Yeah, you get a lot of good feedback. And you know, look, that's the nature of the club is that show because we try to show you in real time the kind of thinking that we do behind the scenes.

JEFF MARKS: All right, let's jump into earnings. Salesforce reported last night stronger than expected quarter. They raised guidance on a number of different areas. Slack, doing incredibly well with that sales growth there accelerating. And Benioff, too, CEO Marc Benioff, he talked about a focus on profitability and revenue growth. And I think that profitability is what a lot of investors wanted to hear.

JIM CRAMER: You're so right. I mean, I was going over with Marc this morning in preparation for this show, because he liked our note so much. And he is urging people to recognize-- and I think this was the real takeaway of last night, was that 5 out of 5 quarters of greater than 20% growth. 3 out of 5 quarters of 20% margin growth. That's extraordinary.

And what that says is even though the company's really big, it is making more money-- great productivity there. They're winning client after client and the clients are-- obviously, satisfied clients. They're winning over this financial vertical and that, historically, has been tough, but they've got it. The RBC was good and they were doing great stuff with Robinhood.

JEFF MARKS: And we got Dreamforce, I believe next month, right? September.

JIM CRAMER: Yeah, now, Dreamforce is controversial.

JEFF MARKS: They'll display a lot of new innovations regarding Slack.

JIM CRAMER: 50 CEOs. 39% growth in Slack. Slack is the Trojan horse. That's how they're going to get into more enterprises. Now, he's not-- Marc's not point-blank saying that they're going to rip out outlook, but I think that-- and by the way, I mean it's like Teams versus Zoom. I mean, there's just-- look, there's a lot of different Team Slack, Slack versus this guy. Suffice to say, there's room for everybody. And I do think that MuleSolf turned out to be good, Slack turned out to be good, Tableau turned out to be good.

And Marc has what we call these unicorns that are buried within his company that are doing quite well. Don't forget Marc he sees a lot of companies-- Zoom, Upstart, which is on Mad Money tonight where they get their money - nCino - from Marc and it really lets them-- and then, because he's like the largest venture capitalist out there, once he's in, everybody goes in.

JEFF MARKS: All right, so we had Salesforce last night tonight, Marvell Technology is going to be reporting earnings.

JIM CRAMER: Yes.

JEFF MARKS: What do you think? Stock is trading around all-time highs, but it is such a strong story on 5G and high performance computing.

JIM CRAMER: If it goes down, remember, they've got a meeting-- in October, they're going to have a complete layout of their big conference. But I think that you, as I've said before, it is a misunderstood story, so there's a possibility that you can get it lower. Look, I was hoping people could get in and Salesforce would have been misunderstood enough that it would be down but it never it never went down because the quarter was so good.

Marvell if the analyst finally understand that it's high performance computing in 5G then it won't go down. But it's been a very hard sell for the analysts who just don't get it.

JEFF MARKS: All right, Jim, now just on the topic of Semis, it's a story I did read today, and this isn't an Action Alerts PLUS name, but I think it's an important story for the market. Taiwan Semi, raising prices by 10% on some of their chips. I saw 20% on some of the auto chips, as well. Just what do you think about this story?

JIM CRAMER: They have pricing power. GlobalFoundries might come public. That would be good deal. It was quizzical. Lam Research was initially down-- semiconductor capital equipment and then, it rallied. I think that the cost of DRAM is going to keep going up. Don't forget this WesternDigital possible merger. It will raise the price of flash. Look, these things are going up. The demand is there. The higher price will not deter people. It's good. It's good.

JEFF MARKS: Yeah. And Jim, just looking around the market today. I do see American Eagle taking a pretty big hit. I think it's related to an Abercrombie Fitch number people don't like. We're also seeing Gap, as well. So it's not to specific to AEO. You know, it's a retail story.

JIM CRAMER: We're going to-- you know, I talked about battling. Unfortunately, we're going to have to battle that one. It's a long-term play. I'm talking about it will double and could double again. But right now, obviously it's out of favor.

Look at Dollar Tree, Dollar General going out of favor. Walmart coming back down, apparently because of Dollar Tree and Dollar General. But they can't all be Williams-Sonoma. And I find that what happens is that periodically we get on the wrong one. It happened. It's the wrong one for now, though. Just the wrong one for now.

JEFF MARKS: Yeah, and we talked yesterday waiting $30-- that $30 level would be our next level to buy.

JIM CRAMER: Yeah.

JEFF MARKS: So if the stocks there today, we'll pull the trigger.

JIM CRAMER: And remember, today is probably going to be a down day. I mean, all the chatter out of Jackson Hole is negative. People may not want to be long going into the weekend, we have money on the sidelines. We've put it to work buying some American Eagle. And if Mastercard's down 10, we might want to buy some of that.

JEFF MARKS: Yeah, so you mentioned Mastercard, PayPal-- using that rotation out of tech to your advantage. That's really when you want to buy. And when things are flying, like Crown Castle was back to 200 a couple of weeks ago, or last week, that's where you sell.

JIM CRAMER: Now, Abbott, I want to remember, again, they've got that very big read out for their heart drug, heart device. That's tomorrow. We talked about AbbVie being the best buy with rates going higher that that may not make it as attractive. If it comes down, you want to be in.

I could reiterate, by the way, Cisco. That comes in. One of the cheapest stocks we have.

JEFF MARKS: Yeah, especially, too, now that so much of their business is software, now. They gave annual guidance for the first time in I think in company history. And I think that visibility is worthy of a higher multiple.

JIM CRAMER: Yeah, and I think that-- I find that Cisco is a-- remember, it's an order story, and the orders are really good. Some people may not understand that, but it's what you have to focus on.

JEFF MARKS: All right, Jim, it is our last show of the week. So I just want to do a quick look ahead to next week. A couple of earnings reports in the portfolio-- American Eagle, we just touched on that. But also, Broadcom is going to be reporting, as well,

JIM CRAMER: You know, Broadcom, it could go down. We were talking about how if it went back to 4% it might be interesting, the yield. But I mean, it's a very fluid situation Marvell was up $0.80 now and Marvell is down. The semis are fluid, in part, they should be because if their most important company, Taiwan Semi, is raising price, it hurts the margins of most of these companies.

I'm hoping that Walmart can stabilize. Big position for ours, I didn't want to have to flip it at $150. I think-- we don't want to play hedge fund match here. We just don't.

JEFF MARKS: That quarter was great from Walmart.

JIM CRAMER: It was great but--

JEFF MARKS: And it's still--

JIM CRAMER: It's the Walmart Plus, still.

JEFF MARKS: --below where it was two quarters ago.

JIM CRAMER: But they've got to re-energize Walmart Plus. They have to find a way to make it so that you must subscribe and they've not make it-- they've not made it a must subscribe. And sometimes I fear that when Marc Lore left, the guy, Jet.com, he may have taken a lot of the original thinking with him. They've got to really re-energize that Plus. They've got to give you something that makes it so it's a true bargain-- you know, drugs for free. Whatever. They have to come up with something.

JEFF MARKS: All right, that's the show for the day and for the week. But we'll still be sending out alerts tomorrow. But have a great weekend, everyone, and we'll see you soon.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long CRM, MRVL, AEO, AVGO.