Cramer's 'Mad Money' Recap: Now, the Focus Is Earnings

Cramer said yes, it is. The selling have been overdone and the outlook for the company remains strong. He noted that in the three months leading up to the news, shares of Celgene fell by 16%, making the stock cheap even before the news. Shares now trade at less than 11 times earnings, despite the fact management reaffirmed its guidance.

Over the long term, Cramer said the Revlimid news simply isn't that bad. It has delayed, but not killed, the drug's approval in Europe by about 18 months. Celgene still has a healthy stable of other drugs in the pipeline to help it grow. In fact, Celgene has nine drugs in phase two and phase three clinical trials.

Cramer said shares of Celgene are now way too cheap, but still could get cheaper. He advised buying half a position now and waiting until after the quarter ends Friday to pick up the other half.

Still a Growth Story, But...

So what does a broken company look like? Cramer said that it doesn't look like Bed Bath & Beyond(BBBY) , a best-of-breed growth stock that was up 27% for the year before the company stumbled last Wednesday when it delivered slowing same-store sales and tepid guidance. Shares of Bed Bath and Beyond fell 16% on the news.

Despite popular belief, business at Bed Bath & Beyond is not falling off a cliff, said Cramer, as management is simply under-promising and over-delivering as they have many times in the past. The company sells housewares, he said, not the kind of items consumers are likely to buy online. With gas prices falling, consumers have more money in their pockets to spend.

Cramer said the growth story remains intact at Bed Bath, as the company looks to acquire Cost Plus(CPWM) , an acquisition that will offer many synergies to its current business. The company also has a $600 million stock buyback program.

With shares going from expensive to cheap at a new land-speed record, Cramer said he'd also buy half a position at current levels and complete that position after the company reports its next quarter. Shares of Bed Bath & Beyond are trading at 11.7 times earnings with a 13% growth rate.

Lightning Round

Here's what Cramer had to say about callers' stocks during the "Lightning Round":

Ariad Pharmaceuticals(ARIA) : "I still like the stock very much. The speculative stocks are paying off big. Sell half and let the rest run."

Weight Watchers(WTW) : "I still don't like it. It's a dangerous stock and the company has lost its momentum."