CNBC’s Jim Cramer broke down Thursday’s sell-off and explained why he thinks the coronavirus outbreak will continue to be a thorn in the market. The “Mad Money” host checked in with Domino’s Pizza CEO Ritch Allison after the chain reported a domineering fourth-quarter amid a tight delivery market. Later in the show Cramer broke down why investors may want to buy the dip in Vertex Pharmaceuticals.
More sell-offs to come
Healthcare workers are working in protective gear at the National Medical Center on February 20, 2020 in Seoul, South Korea.
Jong-Hyun Kim | Anadolu Agency | Getty Images
Domino’s Pizza dominates in fourth quarter
An employee moves a pizza to an oven at a Domino’s Pizza Inc. restaurant in Chantilly, Virginia.
Andrew Harrer | Bloomberg | Getty Images
Carryout has become a bright spot for Domino’s Pizza as the restaurant chain battles in a tough, low-margin food delivery environment, CEO Ritch Allison told Cramer.
Shares of the Ann Arbor, Michigan-based pizza franchise popped almost 26% during the trading day on a strong fourth-quarter report that smashed Wall Street estimates.
“While most of the industry is running headlong into delivery, which is inherently a more profitable channel to serve, we’re working hard to hold serve on that delivery side of the business while really growing that carryout channel,” Allison said in a “Mad Money” interview. Carryout “is going to be an important part of the profit equation going forward.”
Buy the biotech dip
Jeffrey Leiden, M.D., Ph.D., Chairman, President and Chief Executive Officer of Vertex Pharmaceuticals, poses for a portrait at the Vertex Pharmaceuticals headquarters in Boston on Nov. 28, 2017.
Dina Rudick | The Boston Globe | Getty Images
Cramer’s lightning round
In Cramer’s lighting round, the “Mad Money” host delivered his thoughts on callers’ favorite stock picks in rapid speed.
General Motors: “No. I think GM is of the past. … I think it’s going to perform less in the market.”
Okta: “Well look, that’s a Cramer-family fave, Okta. … It is a high flyer. [CEO] Todd McKinnon is doing a great job. I would not buy it all at once. Zscaler is down tonight. That could make Okta go lower. Maybe you pick at it that way.”
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