Even though the quarter was widely seen as weak and shares initially fell, the stock turned around and closed up 2 percent on Wednesday.
“It was a terrific moment to buy, and it was no wonder that the stock of FedEx finished up more than $4 bucks today. You see, there was actually no disappointment. If anything there was tremendous exuberance,” the “Mad Money” host said.
Investors were initially worried about FedEx’s European division being hacked, a $300 million problem that the company worked swiftly to fix. But Cramer said other, more powerful drivers overshadowed the cyberbreach.
“FedEx benefits from a robust global economy, where e-commerce from brick-and-mortar retailers is growing like a weed. One of the execs on the conference call, a fellow by the name of Rajesh Subramaniam, told us, and I quote, ‘We are seeing the best year for global trade in years,'” Cramer said.
FedEx’s management attributed the rapid growth to the expansion of manufacturing, particularly in the technology space. With plenty of forward-thinking initiatives underway, the company may quickly regain its place in Wall Street’s good graces, Cramer said.
“In the end, regardless of the hack, this company is doing incredibly well and it’s the logical play on worldwide growth,” the “Mad Money” host concluded. “Yep, even after FedEx’s run today and that amazing reversal, I think it’s got a lot more upside.”