Mad Money

Cramer Remix: The video game space is on fire. Here's how to play it

Cramer Remix: The video game space is on fire. Here’s how to play it
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Cramer Remix: The video game space is on fire. Here’s how to play it

Right now there is practically no other theme hotter than video games, Jim Cramer says.

Restaurants and retailers have all reported that it has become very hard to entice consumers into their locations. This is just further evidence that people just want to stay home, watch TV, use social media and play games these days.

"The video game space is on fire and you've got a ton of ways to play it," the "Mad Money" host said.

For those who think games are only for kids, the numbers prove otherwise. Industry-trade group Entertainment Software Association reported that 63 percent of all U.S. households have at least one person who plays video games regularly, with the average gamer 35-years-old.

Additionally, consumers spent $23.5 billion on gaming hardware, software and accessories last year. The biggest problem in the video game space is that there are so many options to invest in, Cramer said.

Cramer's top picks were NVIDIA or Advanced Micro Devices for components, and Electronic Arts, Activision Blizzard or Take-Two Interactive for games, depending on an investor's risk profile.

"The key takeaway … this is not a niche business, it is a mass entertainment business and it's growing — not shrinking — despite what older people might think," Cramer said.


Donald Trump and Hillary Clinton at their first debate at Hofstra University in Hempstead, New York, Sept. 26, 2016.
Jonathan Ernst | Reuters

Cramer sees many reasons not to own stocks right now, as many investors believe that the future of the U.S. will be much worse than the past.

"I am not making any kind of statement about the election in November. But I do think that the rancorous nature of the debate is putting a lid on stocks," he said.

The world of investing has transformed into one where a tweet by Sen. Bernie Sanders has the power take down the entire drug group. Investors simply don't want to own the stocks anymore.

They also don't want to own companies with international exposure when international trade is under the microscope from Donald Trump and Hillary Clinton wants to raise some taxes, Cramer said.

Cramer also noted that the election year could drive the unpopularity of the group, and banks remain unpopular in Washington. He expects to see more regulation ahead in the wake of Wells Fargo's sales scandal.

Bank of America reported on Monday that it earned a whopping $1.8 billion in consumer banking, with strong deposit growth that drove net interest income higher amid a decline in expenses.

The stock quickly popped and then surrendered most of its gains on Monday. The stock basically did nothing.


Sylvia Acevedo, Interim CEO of Girl Scouts
Abigail Stevenson | CNBC

Nutanix is the enterprise cloud software play that came public with a bang three weeks ago, and then fell more than 7 percent on Monday. From the start, investors pegged Nutanix as the best performing IPO of 2016, as it came public at $16 and spiked to $37 by the close on Sept. 30.

Cramer isn't a fan, though.

While Nutanix has a compelling concept and fantastic numbers, the problem is that the IPO was what Cramer calls a "sliver deal." That is when a company comes public, but sells just a tiny sliver of stock. This can cause an enormous spike out of the gate because demand outweighs supply for the stock.

"I hate sliver deals. I hate them because they are setting you up for failure," Cramer said.

Once the lockup expires in a few months, Cramer expects Nutanix to do a secondary offering. That will cause the supply of the stock to outstrip the demand, and the share price will likely get clobbered.

Sylvia Acevedo, interim CEO of Girl Scouts, launched her first rocket into the clear skies of New Mexico when she was just a child to earn her science badge in Girl Scouts.

That experience triggered a lifelong passion for science, and led her to earn an MBA in engineering from Stanford and become a rocket scientist. She is also the White House commissioner on the presidential initiative for Hispanic educational excellence.

In an interview with Cramer, she said she aims for Girl Scouts to not only instill the mission of leadership into girls, but to become more technology-focused and teach how to code.

"It is part of our culture to do technology, to learn how to code, to have hands on projects — whether it's creating fashionable wearables, or creating robots," Acevedo said.

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

Procter & Gamble: "I like Procter. I'd like you to buy it a little bit cheaper, because I think it can come down to $84 or $85. But I think it's a good choice."

Synchrony Financial: "That thing has come down too much. That's kind of attractive to me ... You know what's more attractive? If Visa sells off a couple of bucks. My charitable trust owns it. I think that Charlie Scharf [outgoing CEO] has got some personal things he has to attend to at home in New York, and that stock is coming down and that may be a better opportunity."