Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday, September 27.
Cramer is at the Dreamforce conference, and he likes to know what Silicon Valley is thinking about next. This year's theme is "Personalization." "Technology has made it possible for mass-market goods and services to be tailored to suit your tastes," he said. Companies that know who their customers are and what they want before they want are succeeding big time.
Salesforce (NYSE:CRM) is at the center of this theme, as it provides tools to companies to learn about their customers. Its customer relations platform gathers data and uses AI to attract new clients. "The trick is to ensure that each individual customer feels catered to, which is what this new Apple (NASDAQ:AAPL)-Salesforce partnership will do for many in the service business," the Mad Money host added.
Be it HP (NYSE:HPQ), which allows Coca-Cola (NYSE:KO) to print personalized bottles of its iconic product, or Nike (NYSE:NKE), which has a digital platform so customers can build their perfect sneakers, and Marriott International (NYSE:MAR) using Salesforce to provide a good travel experience for its customers, personalization is everywhere.
Companies that do not have personalization or offer nothing different, like Bed Bath & Beyond (NASDAQ:BBBY), continue to struggle. Personalization helps commoditized industries break homogeneous molds.
"Digital personalizations are no longer merely an option, they're a necessity," said Cramer. Companies that offer personalization are worth investing in.
CEO interview - Box (NYSE:BOX)
The stock of Box is up 12.5% for the year, and the company had a good quarter but guided down. Cramer interviewed CEO Aaron Levie to find out what lies ahead for Box.
Levie said the company targets $1 billion in revenue by 2022, although it will achieve the $1 billion revenue run rate many quarters before that. Box is transitioning form a product-based company to a service-based platform, with security being its top priority.
He also said that the current digital age needs new regulations. "I think we're in an incredibly precarious time because you have a lot of regulations and laws that were built for the 20th century and now, in the 21st century, with the amount of digital transformation that's happening in every industry. We're not shying away from regulation. In a digital age, data security and protection has to remain paramount when it comes to large enterprises," he added.
The company works with large enterprises and government and gives them full control of the product, "as they need to be able to securely manage and store their data, while also ensuring that it stays private and that it complies with all of the different requirements that they have from a regulatory standpoint," Levie elaborated.
"There aren't a lot of regulations that apply to: how should we get our news? How should we be leveraging the information that we put into consumer social media platforms?" concluded Levie as he commented on the Facebook (NASDAQ:FB) saga.
CEO interview - HP Inc.
Cramer interviewed HP Inc. CEO Dion Weisler to know his take on innovation and trust around a brand.
Weisler said that HP headquarters could be considered the birthplace of Silicon Valley. "If innovation were a religion, this would be Jerusalem," he added. It is innovation that has taken HP to new milestones three years after it was spun off. Trust in the brand is the most important factor, as that's what leads to growth.
"We're consistently delivering on the things that we said we would do. That's important to gain trust. We're a trusted brand. If we were at a party, we would be the designated driver," the CEO quipped. That is also the reason HP attracts the best talent and keeps innovating.
Commenting about giving back to the community, Weisler said that company uses 9,000 tons of recycled plastics and it runs on 50% renewable energy, eventually moving towards 100% renewable energy.
CEO interview - Cisco (NASDAQ:CSCO)
Cisco is in a transition phase of moving from a networking hardware company to a provider of security, services and more. The stock is up 26% for the year, and the last quarter performance was good. Cramer interviewed CEO Chuck Robbins to learn more about what lies ahead.
Robbins said that Cisco is innovating and the company now has the right portfolio of products to lead it into the next chapter. Cisco learned early that customers refresh their hardware and software when there's real innovation, and companies are redesigning the infrastructure as they transition to the cloud. Its Catalyst 9000 switch is the fastest growing product in the company's history.
Cisco's immediate focus is cybersecurity, around which it has made key acquisitions in the past few years. "For the past decade, our customers have built networks and they've built security architectures based on a premise that traffic begins at the edge, perhaps at the branch, and terminates in their data center. Today, what's really happening is all the traffic still begins at the edge, but it's terminating in 100 different places, and this is the multi-cloud story," he said.
The CEO also commented on the tariffs imposed by the Trump administration, saying, "We know how to deal with it, and we've had conversations with the administration; we've been optimizing the supply chain, and we've applied some price increases where we had to. I think my bigger concern is what do these trade skirmishes or the uncertainty that's going on, at what point does that flow through to the global macro environment? And that's the bigger fear for us, and that's what we don't want to see."
Viewer calls taken by Cramer
Applied Materials (NASDAQ:AMAT): It's a good company, but it's cyclical. It's not worth owning right now.
Noodles & Company (NASDAQ:NDLS): The comeback has been good, but it's time to book profits.
US Concrete (NASDAQ:USCR): It needs the infrastructure bill to go up. Until then, don't buy.
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