Despite Wall Street''s poor words, stagflation is one of them, according to Jim Cramer on Wednesday. Both countries are experiencing economic woes, and rampant inflation. Fortunately, Cramer does not see our economy falling into stagflation. Instead, he said, we just became overheated coming out of the epidemic and now need time to cool off.
Yesterday, we learned that Target (TGT) - Get Target Corporation Reporthad too much inventory. Wednesday, we saw mortgage applications fall to their lowest level in 20 years. A mortgage at 4.4 percent is still low historically, but as we compare our numbers to those of those who have rates as low as 2%, we may be headed towards a housing boom.
Cramer''s fascination arose because of the possibility that gasoline prices may also be rising.
If hard goods, mortgages, and automobiles peak, then the inflation charge will only be shifted to oil and energy. Crude oil is a tough one, however, as prices are skyrocketing due to a lack of supply.
It''s quite unlikely that oil producers and oil pipelines will be supported by the White House until demand falls on their own.
Executive Decision: Snowflake
Cramer spoke with Frank Slootman, chairman and CEO of Snowflake (SNOW) - Get Snowflake Inc. Class A Report, the data and analytics company that dropped 15% when it first reported earnings, which included a worrying forecast. Shares have since recovered a substantial portion of this loss.
According to Slootman, data has been a mystery. It''s necessary to get data into the point where the project occurred, but with Snowflake, the work is moved to where the data is, and data can be easily combined and used to forecast outcomes.
This new data processing technique has allowed drug companies to reduce drug development from 12 to nine years. That''s because data processes can now be conducted simultaneously and data can more easily be shared amongst the many partners with which drug companies typically work.
Supply chain management is another key component for Snowflake. Slootman said retailers can no longer depend on intuition to maintain inventory levels, and that data must be processed in real time, keeping their competitors ahead.
When asked about fears of a collapse, Slootman encouraged investors to go beyond the 90-day mark. Snowflake''s consumption model allows customers to use their services when they need them, and customers may expand with their business objectives.
Executive Decision: Cisco Systems
Cramer spoke with Chuck Robbins, chairman and CEO of Cisco Systems (CSCO) - Get Cisco Systems Inc. Report, the networking equipment company that saw its shares decrease by 1.4 percent to retarget. Shares of Cisco currently trade for 13 times earnings with a 3.4% dividend yield.
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Despite factual reports, Robbins said, the company at Cisco is still "live and well"
Customers are still looking to Cisco for innovation, whether that is performance or reduced power consumption. Robbins said he still believes in the market and opportunities for additional mergers and acquisitions.
There are a lot of problems in the world right now, according to Robbins. Companies have encountered a lot in the past few years. They don''t panic and stop spending like they used to at every little horror. Companies are now more resilient.
Executive Decision: Okta
Cramer sat down with Todd McKinnon, chairman and CEO of Okta (OKTA) - Get Okta Inc. Report, the identity and access provider that''s seen its stocks fall 74% from highs as tech companies have retreated.
Okta''s fundamentals haven''t changed, according to McKinnon. Companies still need the appropriate technology for their hybrid work environments and to develop new digital products and services for their customers. Identity management is at the core of these trends.
Okta is assisting in developing so-called "zero trust" environments, where every transaction is verified so that users can only get access to what they need. Gone are the days when security can be left to a firewall, and everything must be built with zero-trust credentials.
McKinnon contacted more than 400 Okta customers in March, revealing that the breach was a real learning experience for the company. It also changed the way the customer''s support teams acted.
Lightning Round
Cramer was bullish onNRG Energy (NRG) - Get NRG Energy Inc. Reportand Science Applications International (SAIC) - Get SCIENCE APPLICATIONS INTERNATIONAL CORPORATION Report.
Cramer was hit by an injury onAnnaly Capital (NLY) - Get Annaly Capital Management Inc Reportand Enphase Energy (ENPH) - Get Enphase Energy Inc. Report.
Digitize or Die?
Cramer said there''s an undercurrent in Silicon Valley that every company must "digitize or die" despite this fact. In a time of uncertainty, long-term goals can go into hibernation, leaving consultants and integrators without customers.
Cramer said that during the dot-com fall, everyone who was assisting companies get online vaporized. When you''re in survival mode, he said, there simply isn''t enough money to look for the future.
