Merger Monday was back in action to kick off the start of a new week, and the big deals announced reflect exactly what is going on in the market.
Are you reading this, Mark Zuckerberg? If so, Jim Cramer recommends that you take a few notes.
Of the mergers announced, the one that caught Cramer's eye was from Publicis, the large French advertising firm, and its intentions to purchase Sapient, a consulting firm. At first, Cramer was confused by this announcement. What in the world would a consulting firm bring to an advertising firm?
Then he realized this merger is exactly what the stock market needs right now: storytelling. The deal between Publicis and Sapient will ultimately make Publicis more relevant in the digital world. The exact reason why stocks like Google, Facebook and Twitter have remained undervalued, despite various missteps in the market rally last week.
In his research on Sapient, Cramer came across a speech given by actor Kevin Spacey that he considered brilliant. Spacey reiterated that there is an explosion of storytelling right now. In the stock market, people want to be data generators rather than consumers. Meaning, they want to create stories.
For instance, if the average person on Facebook generates 90 pieces of content a month, that translates to 30 billion pieces of new content a month, a staggering number of stories. And people continue to type away , telling their stories with smoke coming out of their fingers and no end in sight.
In fact, research shows that information provided in the form of a story actually penetrates deeper into the human brain because it triggers an emotional response. Hence, they are more likely to remember the information through engagement and inspiration.
Companies like Whole Foods understood this, and hired SapientNitro to tell its story. They created a digital screen on a wall that runs an Instagram feed showing produce on its fields, creating a farm-to-table experience. They understood that a good story in advertising can lead to inspired customers, which leads to a rising stock price.
"I just wish that each of the new networks, meaning Google, Facebook and Twitter knew how to tell their own stories. Perhaps the way that the red-hot Alibaba will do when it reports on Tuesday morning," said Cramer.
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The "Mad Money" host also recommended embracing stocks of the new networks, such as YouTube, with their billions of stories that are created by regular people. Not the advertisers. It's a new world, with a new way to communicate to consumers.
So as Facebook, Google and Twitter struggle to keep their identity in a digital world, they also scramble to get their stocks going again.
"Maybe all three companies should just hire Kevin Spacey," said Cramer. He's clearly a guy who knows how to tell a story, and that's exactly what people want—a tangible connection, with no grand schemes that may or may not make money one day.
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