Cramer Remix: This board room shake up makes eBay a buy
- "I want you to buy eBay. I think that what Elliott [Management's] done is remarkable," CNBC's Jim Cramer says.
- I think that Devin Wenig as CEO—I think he's gonna go with the plan to split it up. If he doesn't, I think he's gonna be set up for a little bit of trouble," the "Mad Money" host says.
- Cramer explains why he's suggesting investors to buy Costco and sell Kroger in the competitive world of groceries.
Investors can place a bet on eBay now that the e-commerce corporation could potentially be split up, CNBC's Jim Cramer said Monday.
"I want you to buy eBay," the "Mad Money" host said. "I think that what Elliott [Management's] done is remarkable. I think that Devin Wenig as CEO—I think he's gonna go with the plan to split it up. If he doesn't, I think he's gonna be set up for a little bit of trouble.
Elliott, the activist investor, took a $1.4 billion stake in eBay earlier this year and issued a list of recommendations for the company's future. Shares of eBay closed about 6 percent higher after the hedge fund acquired more than 4 percent of the tech company.
As part of the recommendations, eBay's "portfolio of Classifieds properties" and online ticket exchange StubHub could be separated from the parent. Cramer has previously suggested that eBay follow suit.
"I do think that the plan itself that Elliott's propounded is a great one. Own eBay," he said.
Shifting sentiment
Wall Street could be in line for a string of good trading days as sentiment shifts and analysts get more bullish about stocks, Cramer said.
The major indexes caught a spark during the session with the Dow Jones Industrial Average climbing more than 200 points, the Nasdaq adding almost 150 points, and the growing about 1.5 percent.
Cramer said he expected the market to increase because of the way stocks fell and rebounded on Friday.
"Last week, sentiment just got too negative, and when everybody's negative that means there's hardly anyone left to sell," the host said. "With no natural sellers, the market can roar across the board."
Find out why Cramer thinks there's more market upside to come here
A look at the bull
The longest bull market in history began a decade ago. Cramer took some time to reflect on the real lesson from the run, including why it's important to look at individual companies and how former Federal Reserve Chief Ben Bernanke abandoned laissez-faire policies to help induce a market bottom.
Stocks had gotten extraordinarily cheap, which caused them to come roaring back, the host said.
Listen to Cramer review the 10-year bull run here
Cramer's grocery list
Amazon has plans to make another big splash in the grocery industry and Costco may be the only company prepared to defend its market share, Cramer said.
The host recommended that investors can buy shares of both Amazon and Costco, but they should sell their stake in Kroger. Although Amazon is already bagging groceries with Whole Foods, Cramer called the new supermarket venture "icing on the cake."
"Now I did some digging over the weekend and ... I now feel pretty confident to say Amazon will be making a major, major push into the supermarket space probably sooner rather than later," he said. "My sources suggest that Amazon's expansion here may be much more significant than what we initially thought after reading that [Wall Street] Journal article."
Click here to learn what Costco is doing that Kroger is not
A revolution in medicine
Cramer brought on Veeva CEO Peter Gassner to learn how his company's cloud software is topping the company's own expectations. Working with some of the world's largest pharmaceutical companies, Veeva's technology has helped a large quantity of new drugs get approved.
Still, the host noted that Veeva's stock dropped even though it delivered a strong quarterly report weeks ago. But Gassner expects to bring in more than $1 billion in sales in 2019.
"I'm really optimistic about our future, Jim, especially since medicine is undergoing a real revolution here moving towards precision medicine using cell therapy, gene therapy to really target what's wrong with an individual person and fix that," the chief said. "That's a long term revolution in medicine that our customers are just starting on."
Hear Cramer's interview with Veeva CEO Peter Gassner here
Kicking cancer with data
Artificial intelligence is being utilized in the health care space and it will hep shape the future of medicine. The pharmaceutical industry has spent billions of dollars on gene therapy drugs, Cramer noted.
He sat down with Eric Topol, founder and director of the Scripps Research Translational Institute, who explained why large data sets can transform the future of cancer. Topol also discussed his new book, "Deep Medicine: How Artificial Intelligence Can Make Healthcare Human Again."
Artificial intelligence is "the ultimate gift of time by augmenting the performance of doctors, clinicians, nurses," Topol said. "That's a big decompression of burden, but also for patients giving them algorithms to interpret their data they're generating ... The patient's taking on more, the doctor is having to do less. Machines coming to the rescue."
Catch the interview here
Cramer's lightning round: Life sciences is a buy
In Cramer's lightning round, the "Mad Money" host ran through callers' questions on their favorite stock picks.
CenturyLink Inc.: Sell. "I would never—please don't ever put CenturyLink in the same sentence as Lamborghini. It's just not fair to Lamborghini."
Fluidigm Corp.: "Everything in this space is a buy. I know that sounds ridiculous. They're speculative, but you know Illumina [Inc.], Thermo [Fisher Scientific Inc.], and take a look at how much Danaher paid for GE's business. It's good to own."
Ambarella Inc.: "I think it's finally come back. They reported a really good quarter. I mean I was kind of mesmerized how good that quarter was. a lot of people had written it off. I think we're O.K. here."
Disclosure: Cramer's charitable trust owns shares of Amazon.
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