Cramer Remix: Don’t worry about this stock’s post-earnings drop

  • CNBC's Jim Cramer breaks down why Dropbox’s recent decline is not worth fretting about.
  • The "Mad Money" host also sits down with Brinks CEO Doug Pertz.
  • In the lightning round, Cramer gives his take on which cruise line stock he prefers.

Although Dropbox shares fell after its second-quarter earnings report last week, Cramer thinks the sell-off is not a sign of trouble at the cloud storage company but rather the product of sky-high expectations.

In the four days leading up to the Thursday earnings release, Dropbox rallied 14 percent. Although the company beat Wall Street analysts' expectations, the stock still plunged almost 10 percent the next day.

Cramer believes that the people who bought Dropbox before the earnings release were "betting on insanely out of the world numbers" and sold the stock when their expectations weren't met.

Despite the selloff, Cramer is still a fan of Dropbox's subscription business model. "I think you have to use any weakness here as a buying opportunity," he said.

Watch Cramer's full take on Dropbox here.

Avoid banks to ride out the Turkish currency crisis

resident Donald Trump (L) welcomes President Recep Tayyip Erdogan (R) of Turkey outside the West Wing of the White House May 16, 2017 in Washington, DC.
Getty Images
resident Donald Trump (L) welcomes President Recep Tayyip Erdogan (R) of Turkey outside the West Wing of the White House May 16, 2017 in Washington, DC.

The Turkish currency crisis could be a buying opportunity for investors as long as they stick to stocks that won't be contaminated by the situation, Cramer said on Monday.

"Do not buy anything that can possibly be related to Turkey, at least not at first," the Mad Money host said. "That means you do have to stay away from the banks, and not just because bears will claim they're linked with Turkey. Contagion breeds a stronger dollar and that translates into lower interest rates, which mean weaker earnings for the banks."

The Turkish lira hit a record lows on Friday and Monday after President Donald Trump announced he was doubling metal tariffs on the country. The drop in the currency led to the S&P 500 and Dow industrials slipping.

Cramer believes that the Turkish meltdown will open up more buying opportunities, similar to recent financial crises in Greece, Italy, Spain and Cyprus. The key is sticking to stocks that are dropping because of the market sell-off but don't have a stake in the Turkish crisis.

Read more on Cramer's strategies to avoid the Turkish currency crisis here.

Brinks CEO on cannabis and Dunbar Armored deal

Douglas Pertz, CEO of The Brinks Company 
Adam Jeffery | CNBC
Douglas Pertz, CEO of The Brinks Company 

Brinks CEO Douglas Pertz said that the cash management company is ready to benefit from Canada's legalization of cannabis.

"We're talking to some of the largest players there today to manage all of their deliveries, as well as their cash management of that," Pertz told Cramer on Monday.

Canada is the first Group of Seven country to approve recreational use of marijuana and only the second worldwide to legalize it nationwide. Starting Oct. 17, cannabis will be available for purchase in pot shops.

Brinks stands to gain from cannabis legalization. In the United States, marijuana dispensaries can only accept cash. That means that Brinks and its armored trucks are a necessary part of doing business.

One factor that might help the Richmond-based business make the most of the opportunity is its deal with Dunbar Armored, previously one of its top rivals, which closed on Monday.

Watch the full interview here.

Booking Holdings' growth slowdown

Jeffery Boyd, chief executive officer of Priceline Group Inc., listens during a interview in New York, U.S., on Monday, Oct. 17, 2016.
Christopher Goodney | Bloomberg | Getty Images
Jeffery Boyd, chief executive officer of Priceline Group Inc., listens during a interview in New York, U.S., on Monday, Oct. 17, 2016.

Shares of Booking Holdings, the company that owns online travel agent Priceline, have fallen more than 7 percent since last week when executives gave a weak forecast for third-quarter earnings. CNBC's Jim Cramer explained why this once best-of-breed stock, which also owns Booking.com, KAYAK and RentalCars.com, has taken a turn for the worst.

Cramer pinpoints last August as when the company started showing its first signs of trouble, reporting a bookings shortage in the second quarter along with a conservative forecast for the third quarter.

Then last November, CEO Glenn Fogel announced that the company was shifting its marketing focus from online platforms such as Google, which it found too expensive, to television. He admitted that the company's growth would likely suffer in the short term as a result, but the stock continued to rally into 2018.

"In short, the earlier slowdown seemed to be abating and the big headwind everyone was worried about—a possibly misspent marketing budget—looked like a nothing-burger," the "Mad Money" host said.

Read more about why Booking Holdings has sacrificed growth for profits here.

Amazon should be worth more than $1 trillion

Amazon.com founder and CEO Jeff Bezos.
Getty Images
Amazon.com founder and CEO Jeff Bezos.

Cramer thinks Amazon, currently valued at $924 million, is not far behind Apple in reaching a $1 trillion valuation. He breaks down the company's strengths in to three key areas: retail, cloud computing and advertising.

"When you consider the rapid growth rate, Amazon's retail business could be worth nearly as much as the whole entire company is right now," Cramer said. In terms of the cloud computing business, Cramer thinks that Amazon Web Services has a "fantastic lead" over its competitors at Google and Microsoft.

A research note from Piper Jaffray released Monday indicated that Amazon's advertising business could be worth more than Amazon Web Services by 2021. The advertising revenue stream is "barely into the stock price," Cramer said.

Cramer said that by summing the individual valuations of these three businesses, one could create "a credible case that Amazon should be worth $1.5 trillion."

Watch Cramer break down Amazon's potential valuation here.

Lightning round: Norwegian Cruise Line sails ahead

In Cramer's lightning round, he shared his take on callers' favorite stocks:

Carnival Cruise Lines: "I think it's good but I think Norwegian has better growth. I think that the proof is in the pudding, and the numbers that we saw from Norwegian were excellent."

The Manitowoc Company: "It is unfathomable that that stock could be as low as it is. I'm not buying it, $800 million if you can put it away, I suggest you do so."

Tootsie Roll Industries: "Everybody keeps thinking that they're going to get a bid, they've never gotten a bid and they don't really have a lot of growth without a bid. The stock is just going to stay right here and flatline. What can I say, I can't recommend stocks on a takeover basis if I don't think the earnings are exploding, and I don't see them exploding."

Disclosure: Cramer's charitable trust owns shares of Amazon, Apple, Alphabet and Microsoft.

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