CNBC’s Jim Cramer explains what the recent mergers tell us about the stock market. The “Mad Money” host also explains why now is the right time to buy shares of Uber. Cramer also sits down with the CEO of PVH to discuss the impacts of the U.S.-China trade war on the American consumer.
Recent mergers show stocks are not as expensive as people think
Pedestrians pass in front of a Tiffany & Co. store.
Akos Stiller | Bloomberg | Getty Images
CEO of Calvin Klein owner warns that China tariffs could soon meaningfully hurt US economy
Manny Chirico, CEO, PVH
Scott Mlyn | CNBC
Tariffs imposed as part of the U.S.-China trade war may not be significantly hurting the American economy yet, but that will not continue forever, PVH CEO Emanuel Chirico told Cramer.
“I think we could all manage it in the short term, with the hope that it would resolve because you could put pressure on your vendor base to do certain things,” said Chirico, whose company owns Tommy Hilfiger and Calvin Klein.
The uncertainty caused by the trade war has also been among the most damaging aspects, Chirico said.
Uber shares are now worth buying — just not too aggressively
Uber CEO Dara Khosrowshahi (center) joins other employees in ringing the Opening Bell at the New York Stock Exchange (NYSE) as the ride-hailing company Uber makes its highly anticipated initial public offering (IPO) on May 10, 2019 in New York City.
Spencer Platt | Getty Images News | Getty Images
“I think Uber’s management is almost done playing defense. The overhang over insider selling’s behind them,” the “Mad Money” host said. “That’s why I’m betting the stock can go higher from here, which is why it is time … to do some buying in the stock of Uber.”
Cramer cautioned against taking too aggressive of a position in the ride-hailing company.
Cramer’s lightning round
Sonos: “The stock just broke out, and it’s looking pretty darn good. I have to tell you I’m a little confused as to why it’s so strong because I don’t think business is that good. But it’s up 57% for the year. I would take a little off the table.”
Elastic N.V.: “It’s just one more company that does the same thing. It does the data, digital investigation and analysis. No, I’ve had it. Not one more. I’m not going to endorse one more. I’m fed up .. just a generic fed up.”
Molson Coors Brewing Company: “No, I’m done with them too. They’ve had more than enough time to try to get this thing right and they have not succeeded.”