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Cramer Remix: Investors are too negative about fast-growing tech

Jim Cramer says it is time for investors to change their standards and start valuing stocks and companies based on evidence, instead of assuming they are guilty because of one measly fact.

Snap priced its IPO at $17 a share on Wednesday, and while many investors seemed to be skeptical to Cramer, he thinks it could be a winner right out of the gate thanks to its reach with a younger demographic.

"I am not saying we shouldn't be critical. I am saying that investors may be too negative right now about faster-growing tech," Cramer said.

This was evident when shares of Salesforce were hammered in after-hours trading on Tuesday because of a conservative revenue forecast. Cramer reminded investors that Salesforce isn't Valeant with a tattered balance sheet; it's an 18-year old company with a record of outperformance.

"In this market, you don't convict—you give the defendant the benefit of the doubt," Cramer said.

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One stock in the technology space is Veeva Systems, the cloud-based software company that got its start helping pharmaceutical sales representatives more efficient.

It now has a platform called Vault that is built to make the life science industry more efficient while ensuring its clients comply with regulations. With the stock up more than 70 percent in the past year, Cramer spoke with CEO Peter Gassner after the company reported a strong quarter.

"We went public about three years ago and Vault was a $15 million business, now it is at a $220 million run rate and actually last quarter we announced we signed our two biggest Vault deals ever," Gassner said.

Cramer didn't count on President Donald Trump showing up on Tuesday night in front of Congress with a tone that sounded … presidential.

Apparently, Wall Street didn't, either.

"The impossible 24 hours ago now seems downright likely today, which is why we put on such a magnificent rally," Cramer said.

A construction worker uses a blowtorch to remove pieces of metal used to lower sections of a bridge into place at the interchange of Interstate 25 and Arapahoe Road in Englewood, Colo.
Seth McConnell | The Denver Post | Getty Images
A construction worker uses a blowtorch to remove pieces of metal used to lower sections of a bridge into place at the interchange of Interstate 25 and Arapahoe Road in Englewood, Colo.

In addition to Trump's new measured and hopeful tones, reiterated his intent to spend on infrastructure.

Sure enough, infrastructure stocks roared higher on Wednesday.

"Emcor and MasTec are quintessential Trump stocks, the kind that have a right to roar if the new, kinder, gentler Trump comes to the hill more often," Cramer.

However, one dilemma that these stocks face is that they will require legislation in order to keep climbing. Both Emcor and MasTec could benefit if the President gets his way on various issues, but could still do well without an infrastructure bill.

Pharmaceutical stocks fell out of favor after the election and suddenly caught fire again, leaving Cramer to turn to the charts to determine if the pharma rally can continue.

To gain further insight from the charts, Cramer spoke with technician Bob Lang, founder of ExplosiveOptions.net and a colleague of Cramer's at RealMoney.com.

For five months this group was toxic, but then made a big turnaround in 2017. When Lang looked at the charts of Pfizer, Merck, Eli Lilly and Allergan, he discovered that the run could continue.

"This is great news for everyone who feels like they have missed the move, as none of these stocks are historically expensive and almost all can be bought right here, but leave some room in case this remarkable rally ever has a pullback," Cramer said.

In the Lightning Round, Cramer gave his take on a few stocks from callers:

Opko Health: "Phil Frost [CEO] has a standing invitation ... let's just say that he needs to come on because I'm starting to think that that latest acquisition really was a buzzkill."

FireEye: "No we are not going with FireEye, we are not going with Palo Alto. Remember, when we had Chuck Robbins from Cisco on, he made it very clear that the one we are going to like in that area is Cisco and not any others. Cisco is kicking butt."