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Cramer: Tesla, Uber signal a huge market transformation

Entering August, a historically terrible month for stocks, Jim Cramer noted a change in perspective on Wall Street to value the long-term over the short-term.

"Some people might dismiss all of this bullishness as mere froth. But I think it signals that the vicious skepticism that has held down the longer-term growth stocks could be coming to an end," the "Mad Money" host said.

Putting aside Cramer's description of Elon Musk's attitude as "I'm smarter than you and I can't bother with you," he actually found logic in the Tesla Motors CEO's long-term vision for the solar industry.

Tesla's all-stock deal to buy SolarCity for $2.6 billion showed Cramer that Musk isn't playing for this year or even next year. Investors that buy SolarCity must believe that the electric grid will fundamentally change in the next decade, he said.





Uber logo on t-shirts
Geoffroy Can Der Hasselt | AFP | Getty Images
Uber logo on t-shirts
"The vicious skepticism that has held down the longer-term growth stocks could be coming to an end." -Jim Cramer

Cramer believes that Musk thinks there could be one central place to build a giant solar field to produce all of the power needed, perhaps in Colorado. Musk could try to solve the problem of transmitting power over long distances, and is ready to attempt that with the Tesla-SolarCity combination.

"You have to think big to understand his plan. Or, maybe we just can't understand it because Musk is such a visionary, something I hate to say because I haven't seen a lot of visionaries," Cramer said.

The next example of a visionary company is Uber, which basically exited China over the weekend when it sold its Chinese business to rival Didi Chuxing. Uber and its Chines shareholders will have a 20 percent stake in the combined company. This was a huge move for Cramer, because it signaled that Uber CEO Travis Kalanick understands how important it is to earn a profit.

"This is fabulous news if you own shares in the private Uber because it could pave the way for an IPO," Cramer said.

This move demonstrated to Cramer that Kalanick is serious about turning Uber into a company that cares where its stock could be priced at one day.

Verizon also shelled out $2.4 billion to buy Fleetmatics, which uses software to manage truck fleets. This deal came right off the back of Verizon's purchase of Yahoo last week, which meant Verizon is thinking about its future — not just the cellphone business.

"There is a path to faster growth. Verizon is on it," Cramer said.

Ultimately these bullish actions could mean the hatred for long-term growth stories is finally over. And if that's the case, Cramer says investors may have finally found a group that can withstand the difficult month of August.


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