×

Cramer Remix: The secret ingredient in Chipotle’s earnings

After watching the market on Thursday, it was blatantly obvious to Jim Cramer that information is simply not being valued accurately.

"When you see a stock that is down and then you read a headline that tells you why it is down, don't automatically presume that either the stock or the headline is right," the "Mad Money" host said.

Instead, go deeper, Cramer said. Read the reviews, find out what people are saying ahead of time, and listen to the company's conference call. That will automatically be far more homework than many other investors are doing.

Initially the numbers for Chipotle looked terrible to Cramer. But since he has been following the company's trajectory, he understood that Chipotle is actually seeing the beginning of the turn in business previously forecasted.

Dilemma confused
George Marks | Retrofile | Getty Images

Cisco's CEO Chuck Robbins told Cramer there were three important takeaways for investors to understand about the quarter.

The first is that the 51 percent growth in software subscriptions is evidence that the company's strategy is working.

The second was the importance of Cisco's internet of things connectivity platform, Jasper, which now has 40 million connected devices and is adding 1.5 million a month.

"As the infrastructure gets more distributed, over the next few years the network is actually going to be more important because you've got to apply security in the network, everything else in the network," Robbins said.

Cramer drilled down on the fundamentals of Twitter with its COO Anthony Noto on Thursday. While the company has 319 million average users worldwide, and is the preferred method for President Donald Trump to communicate, the company still seems to struggle when it comes to articulate a clear corporate strategy.

Meanwhile, competitor Snap, the parent of Snapchat, announced plans to come public between $14 and $16 a share. Noto wished Snap well, and its CEO Evan Spiegel.

"Evan is a friend. We are rooting for him. We want all of our companies in our industry to be very strong and successful because the industry benefits overall because of that," Noto said.

Cramer admits he was wrong about what driverless cars mean for the future of Alphabet.
CNBC
Cramer admits he was wrong about what driverless cars mean for the future of Alphabet.

Last year, software company Twilio came public with a bang as the stock roared to $70 September, up from its initial price of $15.

However, when it filed for a 7 million share secondary offering in October priced at $60 a share, the stock was crushed on the news, ultimately sinking to $26 at the beginning of 2017.

Twilio helps app developers create and manage reliable communications via the cloud, such as Uber, which allows drivers to communicate with passengers through Twilio's platform without using their personal phone number.

Shares once again gained steam this year, up almost 15 percent so far. Cramer spoke with Twilio's co-founder and CEO Jeff Lawson, who explained the model of the company, is to have exposure to developers so they can add Twilio to their tool belt and use when needed.

"The company, we are really focused on developers first. Our model is to get all of the developers of the world on to Twilio and then bring us into the companies they work for when they need to solve communications problems," Lawson said.

Cramer was a self-professed skeptic of driverless cars. That opinion changed when he got into the passenger seat of one at Alphabet's headquarters this week.

"I thought they were a pipe dream, something that wouldn't be viable until the distant future. Turns out I was wrong, and the future is now," he said.

In the Lightning Round, Cramer quickly provided his opinion on stocks from callers:

Herbalife: "I don't know, they report next week and the last few times they reported actually the stock did go down, so maybe that is your best chance. But remember they can refinance the balance sheet soon, so be careful there."

Rite Aid: "I guess they were just so thrilled to get anything. I wasn't too happy with them but my charitable Walgreens. We sold some today. Why? Because we are still not sure whether Walgreens is going to get approval for this one. So, I would be careful."