Market Recap With Jim Cramer: Coinbase and Cathie Wood

Pfizer (PFE) – Get Report Chief Executive Albert Bourla told CNBC that people taking the drug giant’s COVID vaccine will “likely” need a third dose of it within a year after the second one.

Cramer said he doesn’t hate Pfizer stock as much as he used to. “But I would not swap out Abbott Laboratories (ABT) – Get Report, Eli Lilly (LLY) – Get Report, Bristol Myers Squibb (BMY,) – Get Report and AbbVie (ABBV) – Get Report for Pfizer,” Cramer added.

When it comes to cryptocurrency, Cramer said he expects Bitcoin to go down because there was a lot of buying ahead of the Coinbase (COIN) – Get Report IPO.

But, overall, Cramer said Friday was a profit-taking day in the markets to end the week. “There have been some profits that have been taken certainly not based on anything that’s negative either in the stock or bond market,” he said.

Jim Cramer shares his stock market advice every morning with Katherine Ross. Readers can also read Cramer’s market coverage with the Morning Bell, Stock Market Today, and the Mad Money Recap.

Coinbase Goes Public

On Wednesday, Coinbase Global (COIN) – Get Report, the cryptocurrency exchange, opened at $381 a share in its historic Nasdaq debut.

Jim Cramer has been following this public offering and gives his take on the valuation and broader implications of cryptocurrencies and Coinbase’s role in its adoption.

“It’s an unregulated bank that is regulated quite well with a terrific CFO and a very good CEO. There’s no mystery to this company and I think it’s very straightforward,” said Cramer. “There’s no reason to sell — you worship at the aura of Coinbase. I think it’s a false idol, but it can trade with a scarcity value that we just don’t have.”

Cramer added that he is a huge believer in bitcoin, but feels that crypto is taking the place of gold. “I have said that instead of having 10% of your money in gold, but I’m cutting back to 5% and 5% in crypto,” he added.

What Cathie Wood Means for Coinbase

Cathie Wood’s ARK Innovation ETF (ARK) , which has around $22 billion in assets under management, sold around $178 million in Tesla (TSLA) – Get Report shares, its website indicated, while adding $168 million in Coinbase. The rest of its holdings in the world’s biggest cryptocurrency trading platform were added to Wood’s tech innovation and next-generation funds.

“Yesterday I recommended that people buy Coinbase at the opening and then wait for it to go lower. And the reason why I didn’t want them to not have a position was that I sensed that this is a Cathie Wood name, and being a Cathie Wood name is probably the most important thing you can do in this market. It means that you have retail chasing your every move,” said Cramer.

“Cathie Wood was there buying it all day and she’s going to control it just as she controls everything that she’s in,” Cramer added.

Regeneron’s COVID-19 Preventative Treatment

Regeneron’s COVID-19 cocktail shows promise as a preventative treatment. The company’s Phase 3 trial gave the drug to “recently infected” people who were asymptomatic.

“Regen-COV reduced the overall risk of progressing to symptomatic COVID-19 by 31% (primary endpoint), and by 76% after the third day,” Regeneron said in a statement.

Regeneron said it will ask the U.S. Food and Drug Administration to expand the drug’s authorization among people exposed to the virus who haven’t yet been vaccinated.

“I think we’re at a moment where a lot of people feel they can’t get COVID, or if they get COVID then it won’t be that bad. I have a doctor from Harvard who will tell you that’s just not true. If you don’t get vaccinated, there’s an 80% chance that you will get it. Which is incredibly high. So, people should of course get vaccinated. And, Regeneron is the missing ingredient,” Cramer said.

PepsiCo: Buy or Sell?

PepsiCo (PEP) – Get Report reported earnings that came in at $1.21 per share, up 13% from the same period last year and well ahead of the Street consensus forecast of $1.12 per share. Revenues, PepsiCo said, rose 6.8% to $14.82 billion, again topping analyst’s forecasts of a $14.65 billion tally.

“PepsiCo is circumspect on what will happen when America reopens. They need a ratio of people not going back to the office and snacking, and having people snack at work. And if that can be maintained, then their numbers will be fine. I’m as unclear as PepsiCo is, but I do like how PepsiCo is doing better in beverage, ” said Cramer.

Why Cramer Likes Dell, But Not VMWare

Dell (DELL) – Get Report said that it was it would spin off its 81% stake in VMWare (VMW) – Get Report, and the deal would create two standalone companies with Dell receiving a special dividend between $9.3 and $9.7 billion.

“I am a huge believer in Michael Dell and I’ve liked Dell forever. What’s amazing to me is how simple it seems, but it just seems too simple that the stock could just keep going up. And I couldn’t figure out how he was going to get more value out of VMWare, but of course, he’s making them pay a huge sum and that will be used to pay down Dell’s considerable debt, so I think Michael did it again — he’s doing a really great job here,” said Cramer.

“VMWare, not so good. Don’t want to own it,” he added.

What Bitcoin Tells Jim Cramer About Separating Emotions From Investing

Cramer says that investing takes discipline and that there currently are no sellers of bitcoin.

“I have a mortgage that’s outstanding, and I decided to sell enough of my bitcoin to make it so I can pay down that mortgage. I used that funny money that was meant as a currency, to go pay back real money that I have borrowed,” said Cramer.

“To me, that discipline, which is violating the orthodoxy of bitcoin, is important. Bitcoin has no natural sellers because nobody wants to short it and because of the messianic approach they’re taking. I don’t know where it’s is going or if it will keep going up, but why not pay down a mortgage or pay loans off by selling some bitcoin.”

What an Apple Watch Tells Cramer About Apple

Jim Cramer learned a lesson about Apple (AAPL) – Get Report when he misplaced his Apple Watch. The mere thought of a lost watch sent him into a panic.

“Apple’s products mean a lot to me,” he said, which is why investors need to own Apple and not try and trade the daily highs and lows.

“Own it, don’t trade it,” remains Cramer’s advice on Apple.

Semiconductor Stocks To Watch

Jim Cramer has been hyperfocused on the semiconductor sector as the chip shortage impacts the overall sector. Earlier this week, President Joe Biden hosted a semiconductor summit at the White House Monday to discuss the shortage impacting many industries, including the auto industry.

“They definitely cannot do what they want to do. The shortage was self-evident and will not be rectified by building plants because the shortage has to do with capital equipment companies. I think it’s a nice conversation, but no more than that” said Cramer.

“Taiwan Semiconductor (TSM) – Get Report boosted how much it will spend on CAPEX from $28 billion to $30 billion. Applied Materials (AMAT) – Get Report said that they have enough machines to be able to make more, but the humdrum semis causing a problem in autos will be addressed by the end of the year. You can’t get a Lam Research machine (LRCX) – Get Report, and ASML (ASML) – Get Report or KLA (KLA) you can’t get — you can build the walls of a foundry, but you can’t put in the machines because they’re not available. And anything that is available is going to Taiwan Semiconductor.”