CNBC’s Jim Cramer breaks down Wednesday’s market rotation and reveals where retail investors can shop for stocks. The “Mad Money” host sits down with the CEO of Mattel. Later in the show, he gets insight into how the mobile stock app Robinhood managed to grow its user base past 10 million from the company’s co-founders.
Buy the cloud stocks as big funds rotate investments
The Adobe Systems Creative Cloud application is displayed on an Apple iPhone in an arranged photograph taken in Tiskilwa, Illinois.
Daniel Acker | Bloomberg | Getty Images
CNBC’s on Wednesday advised that investors wait some days before buying stocks that have lost their luster in the market.
The big fund investors, who influence stock trajectories, are rotating their holdings away from fast-growing companies with slim profits into equities that pay higher dividends, the “Mad Money” host revealed to viewers.
“These fashion rotations … don’t turn in a day, so wait a little longer and then pick your favorite digitization” plays, Cramer said in comparing investor appetites to fashion trends. “It’s better to catch them on the way down, not chase them on the way up. Let them come to you; fortunately, that’s exactly what they’re doing.”
Mattel’s future is beyond toys
Thomas the Tank Engine arrives at Strasburg Rail Road for Thomas & Friends: A Day Out with Thomas Tour 2014 at Strasburg Rail Road Museum on September 12, 2014 in the Ronks community of Lancaster County, Pennsylvania.
Lisa Lake | Getty Images Entertainment | Getty Images
The future of American toymaker Mattel involves a lot more than just selling toys, the company’s CEO, Ynon Kreiz, told Cramer.
Toys will always be the foundation, but it’s also about “commercializing our brands and finding transformative opportunities for us to be a part of other verticals that are directly adjacent to the toy industry,” Kreiz, who also is chairman, said in an interview.
Think film, television, live events, games and music, Kreiz said, which all are a “tremendous opportunity for a company like Mattel that owns such a strong collection of … global brands that have so much resonance and appeal.”
Robinhood breaks past 10 million subscribers
Robinhood CEOs Baiju Bhatt and Vlad Tenev.
Robinhood grew its user base tenfold in about three years by bringing in younger generations to the finance world, co-CEO of the mobile stock trading app, Vladimir Tenev, told Cramer.
The start-up earlier that day announced it has registered more than 10 million accounts to its platform, up from one million in 2016. Tenev, launched Robinhood with fellow CEO Baiju Bhatt in 2013 before releasing it to the public in 2015, said reaching the 1 million mark was a “milestone.”
“I think it’s just a testament to what we’ve been able to do,” he said in a “Mad Money” interview. “We’re proud of the fact that we’ve enabled so many younger investors and first-time investors to have access to the markets because we believe that the more people that have access to the markets and can start investing earlier the better off our economy will be.”
Cramer’s lightning round
In Cramer’s lightning round, the “Mad Money” host zips through his thoughts about callers’ favorite stock picks.
KLA Corp.: “Don’t touch it. It’s a very good situation.”
: “I had gotten more positive on Twitter. I have to admit that I think it might be ill-advised that [CEO] Jack Dorsey spends the next six months in Africa because I think that’s hard … to manage a company from there versus where the rest of its staff is.”
LGI Homes: “That’s a very inexpensive stock, it’s a good stock. Not as good as Lennar, which is what I’m recommending, but it’s good.”