Cramer Remix: Don’t overthink—the oil rally is for real

The price of crude oil rose above $70 a barrel on Tuesday, and while CNBC’s Jim Cramer admitted that he miscalculated its last breakthrough, he insisted that this time, the circumstances have changed.

“First, President Trump went hardline against Iran and their oil exports have plummeted while Venezuelan exports continue to dwindle, and demand is increasing well north of what it’s been for ages and ages,” the “Mad Money” host said.

Those supply and demand issues suggest that on a fundamental basis, oil prices are ripe for a rebound and “the oil rally is for real,” Cramer told investors.

“To me, that means the oil stocks are worth owning here,” he said. “I think BP, the old British Petroleum, makes the most sense because you get that terrific 5 percent yield. If you’re going to be wrong, you get protected. If you want to be more aggressive, go with an independent producer like Diamondback Energy.”

Most of all, “don’t let an overdeveloped sense of caution trick you into missing these straightforward moves,” the “Mad Money” host said. It could cost you.

Disruptive businesses are cropping up everywhere these days, but investors shouldn’t take a company’s word as gospel just because it brands itself as innovative, Cramer said Tuesday.

“You can’t understand [disruption] without looking the actual disruptors in the eye to see who’s a poser and who’s the real deal,” the “Mad Money” host said, speaking from CNBC’s 1Market studio in San Francisco.

“The truth is what happens in tech reverberates through the rest of the market and, really, the rest of the world,” he said.

Take the semiconductor space. Analysts are reportedly worried that the notoriously boom-and-bust industry is showing signs of slowing, as evidenced by Micron’s recent weaker-than-expected forecast and Intel’s chip manufacturing issues.

The weakness among the chip stocks illustrates that “disruption also has its downsides,” Cramer said.

To read his full analysis, click here.

Marc Benioff and his wife Lynne are buying Time Magazine not only because of its iconic brand and historic relevance, but because they hope to use the outlet as a “platform for change,” the chief told CNBC on Tuesday.

“Lynne and I so strongly believe that business is the greatest platform for change,” Benioff, the chairman, co-founder and co-CEO of Salesforce, told Cramer in an exclusive interview.

With the $190 million all-cash purchase of Time, Benioff hopes to introduce new values to business that go beyond managing companies solely for the benefit of their shareholders.

“When I went to business school, they said, ‘Focus on your shareholder, Marc. The business of business is business.’ That no longer applies. We have to erase that from our history books. The business of business is improving the state of the world,” Benioff said, speaking from Salesforce’s Dreamforce conference in San Francisco.

“We bought [Time] because that’s an important institution that is having a positive global impact on the world and is deeply aligned with our family’s values and we’re delighted to be the new stewards of Time Magazine,” the CEO continued.

To watch and read more about Benioff’s interview, click here. Read coverage of his “Power Lunch” interview here.

In his more than 20 years responding to cyberbreaches, Kevin Mandia, the CEO of enterprise-facing cybersecurity company FireEye, has learned one key, overarching thing about cyberattacks.

“It took me too long, but here’s the dead reality: every cyberattack’s related to geopolitical conditions,” he told CNBC on Tuesday in an interview with Cramer.

“If you’re in the United States and you hack a company, you’re going to get caught, so you have to live in a safe harbor,” Mandia said. “You almost have to be condoned, you have to be supported, and many of the attacks we respond to, there are, in fact, people in uniform conducting the attacks against our companies.”

Mandia, whose company was hired by both Facebook and Google to help identify disinformation campaigns, said that while hackers still frequently target individuals, most hacks surveyed by FireEye in the last year had ties to foreign government entities.

To watch and read more about Mandia’s interview, click here.

Even large companies like Microsoft coming onto the cloud storage scene can’t shake Dropbox’s meteoric rise, Dropbox co-founder and CEO Drew Houston told CNBC on Tuesday.

If anything, the company’s gross margins are rising in the face of the competition, Houston told Cramer in an exclusive interview at Dreamforce, adding that the trend may seem counterintuitive because of a fundamental mistake investors tend to make about Dropbox.

“I think a big misunderstanding is that people thought that people are buying storage when, really, … 80 percent of our subscribers, more than that, are using Dropbox at work,” the CEO said. “And they’re really buying sharing and collaboration and the ability to work better with other people.”

Watch Drew Houston’s full interview here.

In Cramer’s lightning round, he rattled off his take on callers’ favorite stocks:

Goldman Sachs: “I want you to take a longer-term view. I think it’s a long season for Goldman Sachs, but I like the stock very much.”

AeroVironment: “I think that [CEO Wahid] Nawabi acquitted himself quite well and I think this is the opportunity to buy. I think the stock went up, frankly, because people were very excited about what happened on ‘Mad Money.’ I would like to be able to stay in it and buy more.”

Disclosure: Cramer’s charitable trust owns shares of BP, Salesforce, Google parent Alphabet, Microsoft and Goldman Sachs.

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