Now that the big, bad event has finally arrived, Jim Cramer told his Mad Money viewers Thursday, he's looking to be opportunistic and do some buying, because panic is never an investing strategy.
Today's events in Ukraine were horrific, Cramer told viewers, but they unfolded exactly how we expected, which is why the markets were able to rally by the close. What remains to be seen now is what comes next.
Over on Action Alerts PLUS, co-portfolio managers Bob Lang and Chris Versace are talking to their investment club members about sanctions, market rebounds and potential opportunities. Get in on the conversation and learn more about their trading strategies with Action Alerts PLUS.
Cramer reiterated that over the short-term, our domestic war on inflation is the bigger challenge for investors. That's because the longer the Federal Reserve waits to act, the more forcefully it will have to do so, which could throw our economy into recession.
Cramer remained optimistic however, saying that even if we do fall into recession, he expects it would be a non-traditional recession. Why? Because our economy is strong. There are plenty of jobs to go around. The consumer is strong. And a short-term hit to demand is exactly what our supply chains need to catch up.
So while the market may be volatile, Cramer told viewers they should remain vigilant, and pick up their favorite stocks at the prices they want to pay.
Executive Decision: Revolve Group
In his first "Executive Decision" segment, Cramer spoke with Mike Karanikolas and Michael Mente, co-founders and co-CEOs of Revolve Group (RVLV), the online fashion retailer with shares up 3.1% today on strong earnings.
Karanikolas said that Revolve continues to see strength in its brand and all of its key metrics are near all-time highs.
Mente added that this year's Super Bowl event was a huge win for the company. Celebrities love Revolve clothes and when they wear them, social media helps spread the word. Mente was also looking forward to the return of the Revolve Festival this year, after a two-year, pandemic-induced hiatus.
When asked why its platform is so good, Karanikolas explained the company's background isn't in fashion, it's in business and technology. Using automation, Revolve can make recommendations, process orders and manage the customer experience better than the competition.
Revolve is now taking the model globally, with expansions into Canada and other international markets.
Executive Decision: CrowdStrike
With the threats of cyberattacks from Russia looming, Cramer spoke with George Kurtz, co-founder and CEO of CrowdStrike (CRWD), the cybersecurity company that saw its shares spike 13% as American companies respond to President Biden's warnings.
Kurtz said that cyber attacks are now a critical element of modern warfare, and since most of our digital infrastructure is privately owned, everyone needs to be ready for what might come.
CrowdStrike helps secure 14 of our nation's top 20 banks, Kurtz said, but the executives he's spoken to are concerned about what Russia might unleash in retaliation for sanctions against them. So-called "wiper" attacks are now becoming common where attackers just wipe systems clean. Companies affected by these attacks suddenly find that everything is gone and nothing works, including computers, phones, key cards and more.
When asked about our electric grid, Kurtz noted that for decades the philosophy was "if it ain't broke, don't fix it," but now utilities find themselves with older technology that's very hard to upgrade. There is still a lot of work to be done.
Executive Decision: American Electric Power
Speaking of utilities, for his final "Executive Decision" segment, Cramer checked in Nick Akins, chairman and CEO of American Electric Power (AEP), which just posted a five-cents-a-share earnings beat that sent its shares up a quick 2.2%.
Akins said American Electric Power continues to see growth in our economy, although the mix of power needs has changed since before the pandemic. He said residential loads remain strong, as the work-from-home trend continues, but the company also is seeing strong demand for data centers and an uptick in manufacturing.
American Electric Power remains committed to becoming carbon neutral by 2050. Akins said the company would do it more quickly if possible, but it must ensure the grid is stable and resilient and able to cope with extreme events.
As part of its green initiatives, American Electric Power is about to switch on one of the largest wind power sites in the country. Akins said the project cost $2.2 billion to build, but will save rate payers over $3 billion during its lifetime.
Finally, when asked about security, Akins said American Electric Power has stepped up both physical and cyber security and continues to work with the government to mitigate any threats. He said the situation in Ukraine should remind us all how important energy independence and energy diversification is for our country.
Lightning Round
In the Lightning Round, Cramer was bullish on Switch (SWCH), BHP Billiton and Linde (LIN).
Cramer was bearish on FS KKR Capital (FSK) and Autodesk (ADSK).
Meme Stock Game Is Over
In his "No Huddle Offense" segment, Cramer reminded viewers that the game has changed, and they need to be investing in real companies that make real things with real profits. The meme stock game is over, he said, and investors can no longer afford to ignore a company's underlying business.
Last year, the meme stock investors were able to overrun the short sellers in stocks like GameStop (GME) and AMC Entertainment (AMC). But this year, institutional investors are selling, and the meme investors are no match for that kind of fire power.
Buying stocks of companies you love is a great place to start looking for investing ideas, but it shouldn't be where you stop. You need to do your homework and not just follow the crowd. With interest rates and global tensions on the rise, the game has changed, and stock prices reflect profits, not memes.
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