- "The stocks of good corporate citizens are thriving here," CNBC's Jim Cramer said, highlighting Chipotle and Netflix.
- "Turns out rewarding your employees and protecting your customers is good for business," the "Mad Money" host said.
- Cramer said there's more upside in the stocks of Netflix and Chipotle.
VIDEO2:4602:46Jim Cramer on Netflix's Q1 results: 'I think the stock has more upside'Mad Money with Jim Cramer
Chipotle and Netflix are doing good deeds for their workforce and business contributors, moves that are creating more value for the companies, CNBC's Jim Cramer said Wednesday.
"[T]his market's rewarding businesses that have foresight and originality and, most importantly, heart," the "Mad Money" host said. "The stocks of good corporate citizens are thriving here."
Investors can expect to see even more upside in these stocks, the "Mad Money" host said.
"In a very tough environment, companies with ingenuous leadership with a heart are doing well by doing good," he said after reviewing their recent earnings reports. "Turns out rewarding your employees and protecting your customers is good for business."
"They understand that business is the greatest platform for social change," Cramer said, repeating the oft-used mantra of Salesforce CEO Marc Benioff.
Chipotle reported an earnings beat and revenue number that was in line with Wall Street estimates for the first quarter, a quarter when global commerce was hampered by the coronavirus crisis. The restaurant chain in its Tuesday earnings report said it saw same-store sales fall 35% at one point in late March, but the stock managed to spike 12% to $882.26 in Wednesday's session, Cramer noted.
Chipotle did not provide guidance for the rest of the year, a common occurrence by public companies given the uncertainty of the pandemic, leaving investors to valuate the company on other factors, he said. In addition to prior efforts to extend benefits such as sick leave, education and mental health, among others, to employees, Chipotle in March committed to paying out bonuses it promised to its workforce.
"Chipotle paid millions in bonuses to reward workers for … showing up during the Covid era," Cramer said. "Because it's part of their DNA."
As for Netflix, the streaming giant on Tuesday reported a mixed quarterly report alongside a large surge in new subscribers. While the video service has seen a boon in usage with movie theaters closed, the company still faces production headwinds to add new content to the platform. Netflix said it would commit $150 million to help the industry weather the pandemic, including TV and film crews both home and abroad.
After registering 15.8 million new subscribers globally, almost double estimates, management did warn that this growth rate was not sustainable. The rapid growth last quarter can be attributed to the millions of people in self-quarantine who need entertainment as they wait out the pandemic.
"I'm betting this pandemic will have a long-lasting impact on people's behavior," Cramer said. "Netflix offers a superior product at a superior price, and I suspect the worldwide quarantine will be fabulous for word of mouth."
Despite these numbers, Netflix's shares fell almost 3% to $421.42 by Wednesday's close. The stock is up, however, 30% since the beginning of the year.
"I think the stock has more upside and it's nuts that it ended up pulling back today," he said.
VIDEO12:4012:40The stocks of good corporate citizens are thriving, Jim Cramer saysMad Money with Jim Cramer
Disclosure: Cramer's charitable trust owns shares of Salesforce.com
Disclaimer
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
Source: cnbc.com
