Video: Jim's Daily Rundown for Wednesday

In today's Daily Rundown, Jim discusses CVS Health's (CVS) quarterly results, this morning's initiation of Activision Blizzard (ATVI)  , and last night's interview with Twilio (TWLO) CEO Jeff Lawson. 

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Katherine Ross: I'm Katherine Ross and I'm here on the floor of the NYSE with Jim Cramer. Jim, we got CVS earnings out this morning. What are your thoughts there?

Jim Cramer: Well, look, I think that CVS had promised a seven and then looked like they couldn't make seven, and now they're back making seven and they've got a path to making even more than that. You've got to put a 12 multiple on it, that's where you see the stock going. It got a 3% yield. The integration of Aetna is going on ahead of schedule. Even the pharmacy benefit manager is not going to hurt them. I have Larry Merlo tonight. CVS is back. It used to be $100 stock and then Amazon eviscerated it. The front of the store, is still not what I want, which is why I can't just say it's going to go shoot up to 90 but it is in this environment a very inexpensive stock, where people are looking for expensive stocks, even up here.

Katherine Ross: Jim, I'm so excited about this new initiation of yours. You guys initiated Activision Blizzard this morning.

Jim Cramer: Yes, we did and Activision Blizzard is a name that I want to stress is that we had been in and we sold it much higher. We've been waiting for a new console cycle and a new slate of games. Take-Two had been our favorite. I still like what Strauss Zelnick's done and I think Take-Two will do fine, that's Grand Theft Auto. One of the things that emboldened me when we were talking about was with Zev Fima is Electronic Arts reported a quarter that was not good and the stock hasn't come down. So I think we've got ability to be able to buy some ahead of the quarter and not be nearly as risky as it sounds. And it's an inexpensive stock now. They could have a multiyear run if we get to cycle.

Katherine Ross: And I'm excited that I get to talk about it now. Okay.

Jim Cramer: And we're going to recommend it heavily. We're going to talk about the decision when we have our call next week. And you could be integral because you know about these games. What do they have?

Katherine Ross: What Activision Blizzard has? Right now, they've got Overwatch, which is the big game. I think that you know, Zev and I have been talking a lot about Call of Duty, Modern Warfare, and he said that's really what's making him excited about the stock right now.

Jim Cramer: Sure. I mean look, I think that you have a, a refreshed version. That's supposed to be very good. Bobby Kotick, whom I've known for 35 years, very bright guy, the CEO. Nothing's a lay-up in this market, but I do like the fact that we visited this and then on a cycle, sold it when we thought the cycle was lagging. We are now doing the same thing again and we've got a good handle on this stock.

Katherine Ross: Jim, last night, you interviewed Twilio CEO. What were your thoughts there?

Jim Cramer: Okay, I'm glad you asked me. Jeff Lawson made two mistakes. It was, there was this mistaken addition, basically mistaken forecast, forecast totally forgivable because the company's growing so fast. I, the arithmetic thing is just beyond me, so, but the business is growing fast and stock is down 40% from its high. I'm watching HubSpot go down today. That cohort of which is Twilio is one, is not stabilized yet. That said, we're going to buy some and we're going to buy some, because I thought that Lawson explained it well and that Lawson was earnest and I know that it's not my style typically to buy this kind of thing, but I've, I get a feeling it. It's not real accounting the same way that I don't think Under Armour is going to turn it to be real accounting by the way, and business is strong, so we're going to take the risk, not buy a full position. We can take the risk. I don't think it's as dangerous as it sounds. How about that?

Katherine Ross: All right, Jim, thank you so much for joining us. Guys thanks for watching. I'm Katherine Ross and we'll see you tomorrow.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long CVS, ATVI, TWLO.