If a stock is loved by investors, there's no price they won't pay. But if it's hated, there are no depths it cannot sink to. That was Jim Cramer's take on the markets during Mad Money on Friday.
Friday's terrific jobs report means the Federal Reserve needs to raise rates, and fast, to cool the economy -- which is bad for stocks. But perhaps we've already sold off enough that we can digest next week's earnings.
Over on Action Alerts PLUS, co-portfolio managers Bob Lang and Chris Versace note it was a tough week for the benchmark indexes and they say the drops in Meta/Facebook (FB) and PayPal (PYPL) made them feel a lot better about their decision to lock in their gains and exit the two names a few months ago. Get more of their investing ideas and trading strategies on Action Alerts PLUS.
Cramer's game plan for next week starts on Monday when Tyson Foods (TSN), Take-Two Interactive (TTWO) and Simon Property Group (SPG) will give us an update on supply chains, gaming and how stores in the mall have been faring.
Next, on Tuesday, Cramer expects Chipotle Mexican Grill (CMG) to put up terrific earnings, along with health plan provider Centene (CNC) and Pfizer (PFE). He was worried about costs at DuPont (DD).
Wednesday brings earnings from four Cramer favorites, CVS Health (CVS), Pepsico (PEP), Walt Disney (DIS), which does not get enough credit, and toymaker Mattel (MAT).
Then on Thursday, we'll hear from Coca-Cola (KO), which should have good results, along with Twitter (TWTR), Cloudflare (NET) and Zendesk (ZEN), none of which excited Cramer.
Finally, on Friday, it's Under Armour (UA), Cleveland-Cliffs (CLF) and Goodyear Tire (GT) in the spotlight, and Cramer expected good things from all three.
Executive Decision: Columbia Sportswear
In his first "Executive Decision" segment, Cramer spoke with Tim Boyle, chairman, president and CEO of Columbia Sportswear (COLM), the outdoor apparel maker that just posted a monster 60-cents-a-share earnings beat, but still trades for just 17 times earnings.
Boyle admitted that Columbia is seeing supply chain disruptions around the globe, but he said they're done everything they can to mitigate them and were still able to deliver fantastic earnings.
When asked about those earnings, Boyle explained that consumers were smart and bought early this year, leading to fewer promotions and higher gross margins. Columbia also slowed their online sales to help support retailers and ensure they had all of the inventory they needed this winter.
Columbia still has a stable of great brands that customers love, Boyle said, and that's to innovations and new technology, those brands are only getting better and selling better across the globe.
The Analysts Aren't Always Right
When it comes to earnings, things are getting complicated, Cramer told viewers, and that means you can no longer rely on the analysts to be your guide.
In a typical earnings season, companies beat the estimates, raise their guidance and the analysts boost their price targets in response. But this quarter, the Fed threw us a curve ball when they announced that interest rate hikes were coming. That means for most companies, the analyst estimates are now too high.
That's why when ServiceNow (NOW) reported terrific earnings, shares plunged. On the surface, it looked like the company did something terribly wrong. But in reality, analysts cut their price targets to catch up with the new reality.
The same pattern was seen in Qualtrics (XM) and Thermo Fisher Scientific (TMO). Unity Software (U) saw its price targets cut from $174 to $158 a share, despite the company just beating earnings by 17%. Bill.com (BILL) delivered spectacular numbers and also saw major analyst price cuts immediately afterward.
The analysts are playing catch up in a big way, Cramer concluded, so don't rely on their estimates.
Executive Decision: Waters Corp.
For his second "Executive Decision" segment, Cramer also spoke with Dr. Udit Batra, president and CEO of Waters Corp. (WAT), the analytical instruments and software company for the healthcare industry.
Batra explained that 80% of all the molecules submitted for approval to the FDA last year used Waters' Empower software systems, which allows samples to be tested and have the data automatically submitted in a seamless process.
Batra added that Waters is not a Covid stock. While they were involved in vaccine and therapeutic development, the vast majority of their earnings are not Covid-related.
Lightning Round
In the Lightning Round, Cramer was bullish on General Motors (GM), Verizon (VZ) and Berkshire Hathaway (BRK.B).
Cramer was bearish on Rivian (RIVN), Gilead Sciences (GILD), AT&T (T) and United Continental (UAL).
Going to Extremes
In his "No Huddle Offense" segment, Cramer talked about just how extreme investors have been this week. When Amazon (AMZN) reported an upside surprise, investors fell in love, bidding the stock up 13%. But when Facebook/Meta Platforms (FB), also known as Facebook, disappointed, investors wanted out at any price, sending the shares cratering.
You can make a lot of money with the extreme winners, Cramer concluded, but only if you're able to contain your extreme losers.
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