CNBC’s Jim Cramer thinks investors need to start considering consumption time and the federal government as a weight on Apple, Facebook and other tech stocks. The “Mad Money” host sits down with Wingstop CEO Charlie Morrison to get a read on what’s driving the company’s growth. Later in the show he bets that Spotify shares are gaining momentum coming off its latest quarterly earnings and says that Biogen could be on its way to being a $100 billion company.
Two critical factors are ahead of Facebook and Apple
Apple CEO Tim Cook
Spencer Platt | Getty Images
CNBC’s suspects challenges for the tech titans may be afloat.
“While Facebook and Apple both reported strong numbers, I think their stocks should’ve been up much more than they are in [the] after hours,” the “Mad Money” host said. “I’m sensing some skepticism … creeping in about both of them and I suspect some of it has to do with twin constraints of time and government.”
Wingstop CEO breaks down the restaurant franchise’s growth drivers
Charles Morrison, CEO, Wingstop
Scott Mlyn | CNBC
Wingstop is counting on its advertising, digital and delivery strategies to help power through another year of same-store sales growth, CEO Charlie Morrison told CNBC.
The restaurant chain is approaching its 16th consecutive year of positive comp sales, he said. In its most recent quarter, Wingstop grew its advertising spending more than 50% to $12.7 million and expanded its online business to nearly 36% of domestic sales. Delivery is now offered at 80% of its U.S. restaurants.
“We have a bright future ahead of us — a lot of runway for growth not only here in the U.S. but across the world,” Morrison said in an interview with Cramer.
Cramer bets Spotify is building momentum
Daniel Ek, chief executive officer and co-founder of Spotify AB
Akio Kon | Bloomberg | Getty Images
Spotify has solved a number of pressing questions that made investors skeptical about owning the stock, Cramer said.
The music-streaming platform surprised Wall Street on Monday when it recorded a profit including robust subscriber growth in its third quarter, sending the stock up more than 16% that trading day. The stock is now up more than 23% on the year, and the host believes there’s more upside on the way.
“The company just reported a game changer of a quarter, and even after that rally, the stock’s basically back to where it was when it came public in a direct listing last year,” he said.
Biogen could grow into a $100 billion company
Employees at Biogen in Cambridge, Mass.
Suzanne Kreiter | The Boston Globe | Getty Images
Biotech firm Biogen could double its market cap on regulatory approval for its experimental Alzheimer’s drug, aducanumab, Cramer said.
Biogen, with a $54.1 billion market cap as of Wednesday’s close, “could be worth twice that if all goes well” with the Food and Drug Administration, the host said.
Cramer’s lightning round
In Cramer’s lighting round, the “Mad Money” host delivers callers his thoughts about their favorite stock picks of the day in rapid speed.
Cedar Fair: “Cedar Fair is up. … Six Flags is down. You’ve got the right one, Sandusky, Ohio.”
: “I think Square is too low. … I think it’s time to start thinking [it’s time] for it to do something.”
Disclosure: Cramer’s charitable trust owns shares of Apple and Facebook.