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Cramer Remix: Why Apple's stock price is still too low

A rare combination of events in the stock market has convinced Jim Cramer that the market has risen on real strength, not just because investors are covering short positions.

"When you can find companies that could be conceptually undervalued and their stocks run on that, even when they were already expensive on an earnings basis, then you have a powerful thrust that sends us higher even before anyone has time to ring the register," the "Mad Money" host said.

The first sign of strength that Cramer saw stemmed from Apple, as he thinks the benefit of users switching from Samsung to Apple still is not reflected in the stock price.

"I think the phone remains supply-constrained ... and therefore the stock is too low," Cramer said.

Twitter
Chris Ratcliffe | Bloomberg | Getty Images

The possible called off talks for Salesforce to acquire Twitter had nothing to do with Twitter itself, Cramer said on Thursday. Instead, he said it related to LinkedIn.

"It had to do with LinkedIn, specifically the breakdown in LinkedIn's stock from $205 at the beginning of February down to $100 a week later, when it collapsed on really terrible guidance after an OK quarter," Cramer said.

Flash forward to the potential for buying Twitter. The stock fell 20 percent on Thursday, to $19. That is far from its $74 price tag at the end of 2013. Potential suitors for Twitter were intrigued by the decline and future possibilities of data, Cramer said.

Cramer added that Twitter may have asked for a $29 per share price tag, which was steep, but Benioff considered it. But when shareholders began to rebel and hit Salesforce's stock, that could have cooled Benioff from pursuing the deal further.

Pure growth plays have also come roaring back on the market, which prompted Cramer to consider cloud-based software company New Relic.

New Relic platform helps companies understand, monitor and measure what business software is doing and how users interact with it real-time. Its analytics engine contains a dashboard that provides clients with insights into their digital operations.

Cramer spoke with New Relic's founder and CEO, Lew Cirne, who unveiled the company's new product dedicated to supporting the infrastructure that software for companies like Amazon run in.

"We think it delivers complete visibility that our customers are looking for and it increases our total addressable market by a very substantial margin," Cirne said


James Park
Mark Neuling | CNBC
James Park

Fitbit CEO James Park reminded investors that his product is very different from the Apple watch.

"We are a fitness social network that is coupled to hardware, and we are on the cusp of transitioning the mission and purpose of our company from a consumer electronics company to a digital healthcare company," Park said.

Fitbit's focus is very different from Apple, Park said. The company aims to encourage users to become healthier and more active, whether it is through the use of its devices, software or services. Park said the social aspect of the product drives Fitbit's growth.

The rising growth of health-conscious people has also made them more curious about genetic diseases. 23andMe is a privately-held company that provides DNA accessible testing to the masses.

The company first started out as a way for users to learn more about their ancestry, allowing them to provide DNA samples through the mail. 23andMe also utilizes the data to assist with medical research, help research organizations with drug discovery and have further clarification on the role of genetics.

Cramer spoke with 23andMe's CEO Anne Wojcicki, who said she has learned that consumers want to have more control and power over their health.

"23andMe is leading the charge of this whole movement of the consumer actually paying it for themselves, making it affordable, and actually owning the information and taking responsibility for what they learn and implementing that into their daily lives," Wojcicki said.


In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

AMN Healthcare Services: "I talk to Susan Salka [CEO] pretty regularly. I don't think anything is wrong with the stock. I think it's terrific at hospital staffing. Medical staffing is the place to be, I would be a buyer of what Susan Salka is doing."

MiMedx Group: "It is on my list for companies to look at. I am not there yet. You know I like the medical device companies. Let me do more work and come back."

Correction: This article was updated to reflect that 23andMe has assisted in medical research for more than one year, and does not provide a report on an individual's predisposition to conditions.