- CNBC's Jim Cramer explains how a demand for Micron’s chips combined with its buyback could send the company soaring.
- The "Mad Money" host also sits down with the CEOs of Red Hat and Q6 Cyber.
The Trump administration's tariffs and shrinking demand are hurting Micron's stock and worrying Wall Street. But the company's $10 billion buyback could be exceedingly useful for keeping its shares afloat, CNBC's said Friday.
"Yes, historically, this is a boom-and-bust company," the "Mad Money" host said. "But this time may be different, because Micron has never, ever, ever had a $10 billion buyback underneath its stock when it reported bad news."
So before investors sell Micron, they should remember that one our of five of their shares could be bought back by the company via this monster buyback, Cramer said.
"I expect some continued selling until all the hot money has left the stock. But I think we might look back and wonder whether, unlike all the other times, Micron finally has a meaningful buyback that could act as a safety net, if not a trampoline," he said.
"And, hey, if demand for Micron's chips re-accelerates, you know what? Well, with that buyback going on, I think the potential upside could be enormous."
The reason for the in the and is staring investors in the face, Cramer said on Friday.
"We now have the strongest job market in ," he told viewers. "You might want to consider the possibility that tariffs could be — I know it's out there — a positive, not a negative."
Even with U.S. Trade Representative Robert Lighthizer in a letter that the big-box retailer may have to raise prices to combat tariff costs, Cramer didn't anticipate sweeping negative effects.
"A company like that imports tons of stuff from the People's Republic might take a small hit for a couple of quarters, but then either the trade war gets resolved or they start sending their business to Thailand or Vietnam," he said. "In the meantime, we've got the tax cuts and a red-hot economy."
With that and the stock market's notable resilience in mind, Cramer turned to his weekly game plan, complete with his interview with J.P. Morgan's Jamie Dimon, "Mad Money's" trip to Dreamforce and a key Fed meeting.
Wall Street wasn't pleased with on Wednesday, but the software company's outlook is much brighter than this quarter made it seem, President and CEO Jim Whitehurst told CNBC on Friday.
An open-source software provider that helps enterprises get onto the cloud, Red Hat gets much of its business from its Enterprise Linux operating system, which helps run companies' applications via private and public clouds.
But the Enterprise Linux division's modest second-quarter growth of 8 percent didn't mean business was slowing permanently, Whitehurst told Cramer in an exclusive interview.
"Two and a half years ago, we started down a path of trying to get our customers in three-year agreements. By getting them in three-year agreements on Linux, it gives us time to go then sell them new products," he said.
"The problem with that is those three-year agreements are typically fixed, and so they don't go up in value every year, so the bulk of our Linux business and these three-year deals isn't growing at all," Whitehurst continued.
As the three-year deals come closer to their renewal dates, however, the Linux business should turn up, the CEO said.
Cybersecurity executives who think their mission is to defend against and stop cyberattacks in real time are "dead wrong," Q6 Cyber founder and CEO Eli Dominitz told Cramer.
"Why? It's too late," Dominitz said in an interview on "Mad Money." "By the time the bad guys are knocking down your door, banging on your window, it's too late. These guys are steps ahead of you. What we try to do is go after the bad guys, find out who they are. What kind of tools are they using? What kind of tactics do they have? Who are they targeting? Why are they targeting you?"
Privately-held Q6 Cyber takes a "fundamentally different approach to security," Dominitz told Cramer. The Florida-based company specializes in and using intelligence to build proactive cybersecurity strategies rather than focusing solely on defending against existing threats.
To watch and read more about Dominitz's interview, click here.
It's hard to argue with the comeback in shares of Signet, the parent company of Zales and Kay Jewelers. But Cramer has noticed that analysts still seem hesitant to embrace the jewelry giant, so on Friday, he wanted to quash the pessimism.
"I think Wall Street is very pessimistic about Signet — I think, perhaps, too pessimistic," he said. "When you look at the consensus estimates, they're only looking for 2 oercent earnings growth next year. That seems crazy to me when you consider that Signet just shrank its share count by 14 percent, which is going to give the earnings per share a real boost."
Moreover, the company will be facing easier comparisons going into the holiday season, and with the stock trading at a cheap 15 times earnings, the "Mad Money" host was ready to back the jeweler and its bankable CEO.
"The bottom line? Gina Drosos has proven herself to be a true master of UPOD, underpromise and over-deliver," he said. "She's turning Signet Jewelers around and even after the stock's recent run, you know what? I still think it's worth betting on."
In Cramer's lightning round, he zoomed through his take on callers' favorite stocks:
: "I like Walmart very much. It's expensive, but you know what? It's incredibly well-run. Now, be careful here. The one thing I would tell you is that because of the tariffs, there are probably going to be some guys cutting ratings next week, but that's when you want to buy it, not sell it."
: "They just had an analyst meeting. They just have been going around telling people – I used it the other day – that things are really good, so it's not the right time to buy it, but I think if you want to hold on to it, fine, because it is revolutionizing. I'm not kidding. It's disrupting the entire doctor-patient relationship in a positive way."
Disclosure: Cramer's charitable trust owns shares of J.P. Morgan.