Jim Cramer was not surprised that averages closed in the red Wednesday, especially considering that the Greece negotiations collapsed, yet again, and Carl Icahn basically said stocks were overheated.
It certainly doesn't take a lot of research to figure out what drove the market down!
What most interested the "Mad Money" host about Icahn's remarks was that the occasion for his talk was actually celebratory. He was taking a victory lap for his good fortune on his Netflix position.
"I thought Icahn's beef was more with the lack of worth in the high-yield bond market than with equities, especially given that he still owns a ton of stocks," Cramer said.
Cramer did not hear Icahn say that it was time to create short positions on stocks. What he heard him say was more that he was ready to ring the register on stocks like Netflix, because it has had some big moves lately. Yet, he still found value in stocks like Apple, which he said he would buy more on a dip, so it's not like he said to sell everything.
Everything that Cramer heard about the market being overheated made sense to him. He has been saying he doesn't like the market setup for days. It is time to let the story unfold, and wait to see if there is a pullback. Let the weak hands shake out their stocks and see what happens.
On an ugly market day like Wednesday, Cramer thinks it is worth remembering that there are still some stocks out there that can rally when the market tanks.
For instance, Baxter International is a large medical supply company. It is in the middle of a breakup, which Cramer thinks could prompt a huge turnaround.
Historically, the company has been a healthcare conglomerate that was simply too big, and too disparate to be properly managed. As a result, the stock was an underperformer last year and fell more than 17 percent from its peak last July.
Cramer has been advocating the breakup of Baxter and was elated when he heard the news.
"It's been a tough year for Baxter, but the long-awaited breakup is almost upon us. And once the company spins off its bioscience business as Baxalta, I think the upside could be tremendous," Cramer said.
Back in 2012 Kraft broke itself up, and while Kraft Foods got tons of attention when was acquired by Heinz, most investors forgot about the other division—Mondelez International.
Mondelez is the snack food and beverage company that owns such brands as Oreo's, Chips Ahoy, Triscuits, Ritz Crackers, Trident gum, Cadbury chocolate and cream egg and Toblerone, just to name a few.
"The thing is, Mondelez has hit some serious bumps in the road in recent years…however, lately, Mondelez has gotten aggressive about fixing its business, and the stock has suddenly become an outperformer," the "Mad Money" host said.
This recent rally has prompted Cramer to dig a little deeper and find out if it is for real.
Cramer anticipates that this company could have truly phenomenal growth down the road, especially for a packaged-food play. And if the dollar really has peaked, as Cramer thinks it has, that means this is one stock that is getting ready to break out and pull major gains.
Cramer also thinks it is important to remember that sometimes the most meaningful inventions come from places that are more important than money.
That is why Cramer highlighted the story of privately held Embrace, a nonprofit that was created to provide individuals in developing countries with infant warmers that keep underweight and premature babies alive.
Embrace invented a cheap and portable baby warmer that can be used in place of an incubator, which a third of world's population can't access. The business has been so popular that it decided to spin off a for-profit business called Embrace Innovations, in order to commercialize the technology.
Little Lotus is a line of baby warmers that were designed as a swaddle and sleeping bag product for parents in the U.S. Embrace also teamed up with artist Drue Kataoka to create an installation, Touch Our Future, to show the impact of these baby warmers on the babies around the world.
Cramer spoke with Jane Chen, the co-founder and CEO of Embrace Innovations, along with Kataoka.
"Embrace, to date, has reached 150,000 babies with our infant warmer across 10 countries. But the goal was always how do we get to a million babies? The challenge was always to find the funding to do that, to scale sustainably," Chen explained.
Cramer wants to know what the right price for Netflix was on Wednesday. Was it when the stock was up $25 at one point in the morning, soaring on its seven-for-one split news, or when it tumbled back down in the wake of Carl Icahn's victory lap?
"We know that broader ownership is key in a market like this one where home gamers tend to own stocks and institutions tend to rent them. That's why I don't turn up my nose at Netflix's seven-for-one split, even as I recognize that a stock split creates no value," the "Mad Money" host said.
In fact, Cramer does not consider a split in Netflix as being a good reason to buy the stock. It is important to remember that a split is only cosmetic.
Think about it—if you take a pencil and break it in half, you will have two pencils, but you don't have more pencil!
The problem with Netflix really comes down to who owns it, which could be the root of why it split. Right now, the stock trades heavily with institutions and hedge funds, who tend to only rent the stock. Management likely wants more retail investors, who will own the stock over the long term.
Likewise, he also recommended that if you want to sell Netflix, it should be because you think it's too risky at the current price. Not because some fancy hedge fund manager sells it.
Read More Cramer: Netflix split & I don't care!
In the Lightning Round Cramer gave his take on a few caller favorite stocks:
Westlake Chemical Corp: "It is a good company. Look, my charitable trust owns Dow Chemical, and that's the one I like because it's got the good yield and I like Andrew Liveris. The problem with Dow is that you're not going to really get the big buyback until after it closes the Olin deal, but I do like Dow more."
Schlumberger Limited: "My charitable trust owns it, we are looking to pull the trigger at $85 or $86. Buy a little more to be sold in the $90s. That's my play with an open hand; that's where I am."
Read MoreLightning Round: My top oil play, with an open hand