- "Mad Money" host Jim Cramer reveals what's causing investors to lose enthusiasm when it comes to the averages.
- Cramer also sits down with the CEOs of Nvidia and Constellation Brands.
- In the lightning round, Cramer explains why Advanced Micro Devices is a tough stock to own.
CNBC's Jim Cramer knows that "hot money" is the bane of most long-term investors' existence.
Shares of Micron soared ahead of the company's earnings report as analysts cheered on the gains, but when the chipmaker reported a strong quarter, the stock started to drop.
"Right now, though, the short-term shareholders [in Micron] are your real enemy," Cramer said. "They are like unruly tenants who scuff up the walls and take down the fixtures on their way out of Micron."
Cramer's advice? Wait for the madness in Micron to abate before buying in.
"Honestly, nothing is more discouraging for investors than having to deal with hot money and right now hot money is all over the place," the "Mad Money" host said. "Sometimes you just need to let things cool off before you pull the darn trigger."
As markets recovered on Thursday, Cramer emphasized just how much of a battleground the tape has become in 2018.
"I think Amazon defines the modern-day stock market battlefield," the "Mad Money" host said. "Here's a stock that gave up 120 points in two days on rumors and stories about how President Trump hates Amazon."
"But the major point I need to make as we wrap up a largely dispiriting quarter is that if you can't handle the news flow, both fake and real, you need to use this rally to lighten up, maybe even on Monday, [on] the names that have caused you the most fright," Cramer told investors.
The "Mad Money" host noted how easily false accusations can decimate stock prices in this environment, arguing that it was time for investors to reassess the risks in the market.
"If you want to stick with this market, make sure you can handle these accusations from short-sellers and presidents that often turn out to be false or at least overblown," he said.
With that, Cramer turned to his game plan for the week ahead.
Even though Nvidia's stock has fallen under pressure for the chipmaker's ties to cryptocurrency mining, Nvidia founder, President and CEO Jensen Huang doesn't expect the crypto craze to die down anytime soon.
"Cryptocurrency will be here. The ability for the world to have a very low-friction, low-cost way of exchanging value is going to be here for a long time," Huang told CNBC on Thursday in an interview with Cramer.
Huang's company is less a chipmaker now than a catch-all computing company producing high-powered graphics processing units, or GPUs. For months, Nvidia rode the wave of cryptocurrency popularity before Wall Street analysts soured on the volatile trend.
"Blockchain's going to be here for a long time and it's going to be a fundamental new form of computing," Huang told Cramer. "I expect blockchain, I expect cryptocurrency to be an important driver for GPUs."
The recent fatal accident in which a pedestrian was hit by an Uber-operated self-driving vehicle made Huang realize how important his company's work really is.
"It's tragic and we have to make sure that we learn from it," Huang told Cramer. "We now realize the importance of this work, of course, and we're going to continue to do it as carefully and as safely as we can."
Reiterating his point that Uber wasn't using Nvidia's self-driving applications in the faulty car, Huang defended his decision to halt Nvidia's autonomous driving tests until the Uber situation was resolved.
"The important thing is that Nvidia's technology is an open platform. Uber developed their own sensing and driving applications and software," Huang said. "We want to make sure that we take a moment, wait until they do their investigation and learn what we can learn from them."
"We invested in it really for strategic reasons to ultimately develop beverage brands for markets where cannabis becomes recreationally legal, but that said, even though the intent was strategic, the investment itself's been a tremendous investment," Sands told Cramer.
Since Constellation took a stake in Canopy, when it was trading at roughly $13 a share, the marijuana stock has had a healthy rise, closing above $33 a share on the Toronto Stock Exchange (Canopy is based in Canada).
"So it's a tremendous investment, but the strategic element is the most important," Sands said.
In Cramer's lightning round, he shared his take on some callers' favorite stocks:
Advanced Micro Devices: "I feel good about its PC exposure. I feel good about its graphics chips. The problem is this: they're up against Intel and they're up against Nvidia, so it's always going to be a tough time for [CEO] Dr. Lisa Su, but she'll get through it."
Dexcom Inc.: "I think it's going to get taken over. I mean, I've got to tell you, we own Abbott Labs for ActionAlertsPlus.com, but I was quite impressed that Dexcom got that faster approval. It's going to be hard for that company to stay independent."
Disclosure: Cramer's charitable trust owns shares of Amazon, Nvidia and Abbott Laboratories.