Jim Cramer says he’d purchase Disney after shares slid on Netflix information

CNBC’s Jim Cramer said on Friday he sees the sell-off in Disney as a buying opportunity for investors.

Shares of the media and entertainment giant fell 6.94% to hit a fresh 52-week low during the session. However, the “Bad Money” Host said he won’t shy away from the stock because its sharp decline seemed linked to it Netflix‘s prognosis of Subscriber growth slowdown.

Netflix’s outlook — offered Thursday night when the company reported its earnings — spooked investors, and the company’s shares plunged 21.8% on Friday.

“I want to own the stocks of longtime, great Americans who have fallen into a guilt fiasco, and that’s exactly what happened to Disney stock today,” Cramer said, while noting that he was prevented from adding to his shares Charitable Trust on Friday changed Disney’s position after mentioning the stock on morning TV. Cramer’s ethics policy is that he waits 72 hours before executing a trade in any stock that he discusses on CNBC’s television programs.

Cramer’s trust Bought back from Disney in September, about three months after leaving his position entirely for the first time in 16 years. Confidence was added to the stock end of November and then back in December.

Cramer admitted on Friday that he was “too early” at Disney, alluding to the fact that the stock is trading lower than when the trust made its purchases.

“But it’s time to mix speculative stories with investment-grade stories. A lot of the stocks wiped out here belong to companies that don’t have much in the way of earnings, companies that trade mostly on hype or hope,” Cramer said.

He said he sees a number of speculative assets — including cryptocurrencies and stocks that went public through a reverse merger with a special purpose vehicle — that deserve to fight now as Wall Street braces for likely Federal Reserve rate hikes .

“But you can’t just extrapolate the weakness of a company that’s done very well, Netflix, with a whole bunch of other big brand name companies that make amazing products and make good revenue, like Disney,” Cramer said.

“I’m not saying Netflix isn’t worth owning. At a certain price, it sure will,” he added. “What I’m saying is that there are a lot of quality companies that are in distress because of Netflix today, and these were the best ones to buy.”

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Jim Cramer says these are his favourite financial institution shares in 2022

CNBC’s Jim Cramer on Thursday reviewed the latest list of big bank earnings and explained why his nonprofit investment trust is sticking with his property MorganStanley and Wells Fargo.

“Banks are everywhere this earnings season, which just goes to show how important individual stock selection is,” he said “Bad Money” host said. “All banks are not created equal,” he added, although he expects 2022 to be a solid year overall for financials due to likely Federal Reserve rate hikes.

Citigroup

When Citigroup reported Friday, it indicated an 18% year-on-year increase in operating costs. That’s disappointing for Wall Street, Cramer said, because the company’s revenue rose just 1%.

Cramer said the best thing he could say about Citi stock is that it’s cheap, trading at about 80% of its tangible book value. However, he did concede that the stock, which is down nearly 5% over the past week, could see a rebound this quarter if Citi resumes share buybacks; The bank suspended its buyback program in December due to regulatory issues.

JPMorgan

Investors were disappointed too JPMorgan‘s leap in interest-free spending up 11% YoY‘ Cramer said. While it’s no secret that JPMorgan is investing in its business to fend off fintech competition, Cramer said the Street was a little surprised by the amount of capital tied up.

Cramer said he thinks JPMorgan’s sharp sell-off after earnings was a bit overdone. “After that drop, JPMorgan is trading at just 13 times earnings despite being the most expensive in the group [a book value basis]. I think you can do better,” he said.

Wells Fargo

Owned by Cramer’s Wells Fargo Charity Foundation exceeded analysts’ expectations for sales and earnings. “Most importantly, Wells is very interest rate sensitive. So when you see bond yields rising, think Wells Fargo,” Cramer said, adding that the bank’s about-face under CEO Charlie Scharf is “finally paying off.”

Goldman Sachs

Cramer reiterated his positivity on Goldman Sachs, and states that he believes the investment banking giant can do it continue his record in 2021 with another strong performance this year. “Goldman is one of the best franchises in the world, but for heaven’s sake it’s selling for less than nine times its profits,” he said.

He said the only reason his charitable foundation doesn’t own Goldman Sachs is because it already owns Morgan Stanley. “I’m a big believer in diversification — you don’t have to have two investment banks in your portfolio,” he said.

MorganStanley

Cramer said he was very impressed Morgan Stanley’s earnings results for Wednesday, noting that sales and earnings per share exceeded Street’s expectations. Its investment banking unit and wealth management are doing well, Cramer said, and spending remains under control.

“Oh, and they’re aggressively buying back shares. asked Cramer rhetorically.

Bank of America

said Cramer Bank of America, the also reported on Wednesday, delivered solid numbers, including the fact that revenue growth of 10% outpaced spending growth of 6%.

“Like Wells Fargo, Bank of America is very sensitive to interest rates, which means it’s in a great position going into 2022,” Cramer said, adding that the only reason his charitable foundation doesn’t own Bank of America is because of that that he likes Wells Fargo better .

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Jim Cramer, who as soon as noticed oil shares as uninvestable, explains new view

CNBC’s Jim Cramer on Wednesday offered a defense of his newfound optimism about investing in oil stocks, claiming he changed his mind after concluding that circumstances had changed.

“From an asset manager’s perspective, there’s no shame in wearing flip-flops. Call me crazy, but when the facts change, I change my mind. I want to make money,” he said “Bad Money” Host who stated in January 2020 that he was “Done with fossil fuels” and suggested oil stocks were the new tobacco.

At the time, Cramer offered a gloomy outlook on shareholders’ ability to make money from fossil fuel stocks because he believed concerns about climate change were keeping young investors away from these stocks.

Cramer said Wednesday he believes his thinking is justified.

“Was I wrong to call them uninvestable? I do not think so. Before hitting rock bottom in 2020, this group spent years in the kennel. Of course that’s no longer the case,” Cramer said, alluding to the fact that Energy ended in 2021 as the best performing sector in the S&P 500. Energy, too, has already increased by about 16% in 2022.

Cramer said there have been two major shifts at oil and gas companies that have helped stocks in the cohort surpass their previously lackluster returns. The first is that there is an “entirely new attitude” to efforts to reduce carbon emissions, Cramer claimed, pointing out chevrons $10 billion investment by 2028 and Exxon MobileI was recently announced Net zero promise by 2050.

From an investment perspective, however, Cramer said the more important change was that “both the majors and the independents have moved away from that ‘drill-baby-drill’ mentality.”

“Instead of spending a fortune to flood the market with new supply every time oil prices go up, they have become much more cautious. … Your reticence has helped the entire industry catch its breath, and that’s a key reason. ..why crude oil is now $86 a barrel,” he added, explaining that higher oil prices allow the company to be significantly more profitable.

“I spent years telling you all the issues with the oil industry — from an investing perspective — then these companies addressed each and every one of the issues that are important to me,” Cramer said.

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Cramer says anticipate business consolidation earlier than shopping for on-line sports activities playing shares

CNBC’s Jim Cramer said Monday he believes investors should stay away from online sports betting, claiming it was unattractive for their own businesses like Draft kings because there is too much competition in the gaming industry.

“Until we see fewer promotions and more M&A deals, these online sports betting stocks are … very difficult to own,” he said “Bad money” said the host, noting that this view is in stark contrast to something of optimism around the burgeoning cohort in early 2021.

“But when we see what the reality looks like, there is a lot of competition for market share and little profit. What a shame, because profits are what this market wants right now. That’s why every single one of these stocks has been destroyed.” “Said Cramer, referring to people like Penn National Gaming, DraftKings and FanDuel parents Flutter entertainment.

Other players in this area are Caesars Entertainment, which operates an online sports betting company, and Rush Street Interactive.

Cramer’s comments on Monday are in response to a major milestone on Saturday when mobile sports betting was officially legalized in New York, the most populous US state where it did so. The first four bookmakers to meet regulatory requirements and start taking bets were DraftKings, Caesars Sportsbook, Rush Street Interactive, and FanDuel.

Another five operators are still in the process of meeting all legal requirements, Associated Press reported. Cramer said this is something that investors need to consider when examining the impact of New York’s high-profile start.

“These online gambling companies are throwing money at people to gain market share,” Cramer said, referring to the commercial and commercial blitz taking place in New York. “If the industry is already that competitive with four players, imagine the deals you get with nine players.”

Another factor to consider is New York’s “astronomical” 51% tax rate on revenues that online sports betting providers will be subject to, Cramer said.

“Before you can think about buying sports betting stocks, I think we need to see some consolidation. We have to see some companies leave, ”he said.

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Jim Cramer says Common Electrical breaking apart into three firms is the appropriate transfer

CNBCs Jim Cramer cheered on Tuesday General electrics‘s plan to split into three separate companies focused on energy, aviation and healthcare.

While the possible breakup of the American industrial conglomerate may seem symbolically bleak, the Mad Money host said it was the right and necessary financial move and he trusts GE CEO Larry Culp to carry it out.

Culp, who acquired GE in 2018, “saved the company, and while we may miss the GE name, the divisions themselves were a house that, of course, couldn’t hold up,” Cramer said.

Cramer said Culp did an excellent job streamlining GE’s business structure and cleaning up its balance sheet after it was impacted by the financial crisis. However, Cramer said it made no sense to hold the remaining units together at this point.

“Let me put it this way: if you started a business today, you’d never start one that’s part aerospace, part health care, and part energy, including renewable energy,” said Cramer.

GE plans to outsource its healthcare business by early 2023 and its energy business by early 2024, according to a press release from the company. The current GE will be the aerospace-focused company.

Once that happens, Cramer said the standalone companies will be easier to deceive for Wall Street analysts and investors alike.

“Even at its peak, that combination hasn’t wowed anyone in twenty years so you had to do it,” said the former hedge fund manager, but suggested that as separate entities it could be a different story.

“A healthcare company based on high-demand MRI machines that they can’t even get enough of? That’s good, ”said Cramer. “The power and renewable energy business could be very attractive to asset managers looking to go green – and there are plenty of them.”

GE shares rose 2.65% Tuesday to close at $ 111.29 apiece. The stock is up almost 29% since the start of the year, outperforming the S&P 500It’s about 25% profit over the same range.

Cramer is skeptical Rivian is the following Tesla and would slightly personal Ford

CNBCs Jim Cramer said Monday that although electric vehicle startup Rivian Automotive has some strong supporters as it prepares to enter the market, it is skeptical that it will be the next Tesla and would prefer shares of Ford engine.

“Even if everything is going well for Rivian, this industry gets a little overcrowded here. When Tesla started there was no one else, ”Cramer continued.Bad money“Now, however,” Rivian has Ford’s F-150 Lightning hot on his heels, along with GM’s electric Hummer and even Tesla’s Cybertruck. “

With Amazon and Ford as great investors, Rivian has valued its stocks between $ 72 and $ 74 for the IPO and is expected to start trading on Wednesday. “Given the company’s plans to offer 135 million shares, we’re talking about a $ 9.85 billion fundraising, making this the sixth or seventh largest public offering in US history,” said Cramer.

Cramer said he wouldn’t be surprised if Rivian stock stood out even at this high valuation because “the people who buy this thing don’t care about valuation.” Rather, investors are betting that the fledgling company can ramp up production and become a major competitor in the growing EV market.

Cramer praised Rivian for the number of orders it received not only for its pickup truck and the planned SUV, but also for its own Big van deal with Amazon. Additionally, the fact that a competitor like Ford is an investor in Rivian is “a great recognition” of Rivian’s potential, he said.

Ultimately, Cramer told the audience that “if you really believe in Rivian, you have my blessings to speculate.” However, he added, “I would prefer to stay on the sidelines and promote my Ford electric vehicle, which is why we own it for the nonprofit foundation.”

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Disclosure: Cramer’s nonprofit trust owns shares in Ford and Amazon.

Cramer says Tesla is a phenomenon that appears to ‘go up endlessly on nothing’

CNBCs Jim Cramer expressed surprise on Monday at the continued strength in Tesla‘s stock – up about 50% last month and about 200% over the past 12 months.

“Tesla is actually a phenomenon that we need to talk about,” said Cramer “Quäk on the street”, before the opening bell on Wall Street. “In fact, I’ve never seen a stock go up forever for nothing.”

At the time of Cramer’s comments, Tesla shares were up about 2% in pre-trading hours.

The stock gained traction during regular trading, closing 8.5% at $ 1,208.59 per share on a market value of $ 1.2 trillion. Tesla stock hit a new all-time intraday high of $ 1,209.75 apiece during the session.

Tesla has soared in the past few weeks after trading below $ 800 per share in the month of October. Based on Friday’s closing price, the stock was up 28.67% from its closing price of $ 865.80 on October 20 as the electric vehicle maker reported record quarterly sales and earnings after the closing bell that day.

Another catalyst for Tesla came a week ago when hertz announced it Order 100,000 vehicles from Tesla to build its electric vehicle rental fleet by the end of next year. On that day, October 25th, shares in Tesla alone increased by 12.66%, bringing the company’s market cap over $ 1 trillion for the first time.

Morgan Stanley Auto analyst Adam Jonas also issued a positive note for Tesla on October 25th, which likely bolstered sentiment.

Tesla is by far the most valuable automaker in the world.

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However, the company’s stock has been a major battleground on Wall Street for years as one of the heavily truncated or most wagered names.

Many bearish investors believe that Tesla is detached from fundamentals and vastly overvalued, while the bulls believe the EV pioneer can continue to dominate the category, the overall size of which is expected to grow in the years to come.

Cramer positively turned to Tesla about two years ago and took this constructive view of the Elon Musk-managed company. Cramer is also bullish At ford as the old automaker is investing heavily in converting to electric vehicles. “Ford is taking a big step,” said Cramer on Monday. “Ford had an amazing quarter. They introduced a dividend.”

Last Thursday the “Bad money” Host said that Ford CEO is Jim Farley “ready to bury Musk.”

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Jim Cramer says flood of IPOs is weighing on inventory costs

Investors can expect stocks to remain under pressure as long as the market is flooded with new public offerings, CNBC’s Jim Cramer said Thursday.

“A lot of stocks are hit here because there isn’t enough cash to buy all of the junk that has been created lately,”Bad money“said the host.” Inventories are falling because, like goods in a store, there is simply too much inventory to be devalued. The speculators are always the first to go. “

The second half of 2021 is Wall Street Digesting a long list of IPOs that came in the first six months of the year. In the first half of the year, more than 210 IPOs grossed more than $ 70 billion. June was the single month with the highest turnover for the IPO business for almost 21 years.

The IPO market practically separated the bond market, typically a predictor of the overall economy, from the stock market, Cramer said. If the IPO flood continues, stocks will continue to decline under their own weight, he said.

“If we get some respite from new underwriting and the earnings are still good, I’ll stay a cop, but you have to stop the new offering,” said Cramer. “Stocks go down because people have to sell. They don’t want to lose money.”

The Dow Jones industry average rose nearly 54 points, or 0.15%, to close at 34,987.02 on Thursday.

The S&P 500 slipped 0.3% while the Nasdaq composite declined for the third session in a row.

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CNBC’s Bob Pisani contributed to this report.

Jim Cramer blames market sell-off on failures to comprise delta unfold

CNBC’s Jim Cramer came out on Thursday bluntly blaming world governments for the market sell-off and slamming heads of state for failing to get a grip on the spread of a variant of Covid-19.

Major US stock averages all fell nearly 1% during the session, dragging the S&P 500 and Nasdaq Composite indexes from record highs. Health concerns also caused bond yields to decline to levels not seen since February.

The declines can be attributed to the Delta trunk, which is rapidly spreading around the world, Cramer said.

“I put this sell-off right into the laps of politicians around the world because we are facing a failure in global leadership,” saidBad money“Said the host.

“Here in America we do a much better job vaccinating people than in most other countries, but we screwed it up when we volunteered the vaccination process.”

Cramer criticized the US Food and Drug Administration for using coronavirus vaccines such as Modern and PfizerBioNTech. Three vaccines including a one-shot solution of Johnson & Johnson, have been authorized by the Emergency Response Agency to Fight the Health Crisis and distributed to millions across the country.

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Pfizer FDA approval pending of his vaccine in May, followed by one Submission by Moderna for your own product in June.

“You might think this is a formality, but so many Americans don’t trust vaccines and the lack of FDA approval certainly doesn’t help,” Cramer said. “I urge the FDA to explain themselves and their foolhardy behavior.”

The Delta variant, which was first discovered in India and is rapidly spreading around the world, is now the dominant tribe affecting people in the United States in communities where vaccination rates lag behind.

That’s what health experts say Mask requirements for indoor use and public health measures may need to be reintroduced to slow down the spread of the delta variant in the country.

“If we can get a grip on the COVID variants by forcing people to vaccinate, I think bond yields and the stock market will rise again,” Cramer said. “I don’t see much hope of speeding up vaccinations without either paying people money or forcing them, which is not going to happen in this country.

Jim Cramer says Yellen’s rate of interest feedback ‘spooked the market’

CNBC’s Jim Cramer put the decline back on Monday on news from the US Treasury chief.

On Sunday, secretary Janet Yellen told Bloomberg News that raise the interest rate would be positive for the country if the Biden government’s grand spending plans help set off some inflation in an expanding economy.

“The prospect of higher interest rates has scared the market,” said Cramer.Bad money“In response to the mixed meeting on Wall Street.

The Dow Jones industry average slipped 126 points, or 0.36%, to close at 34,630.24. The S&P 500 finished 0.08% lower at 4,226.52. The Nasdaq composite, however, was a winner, improving 0.49% to 13,881.72.

Yellen, a former chairman of the Federal Reserve, said Bloomberg President Joe Biden’s $ 4 trillion bailout could run to $ 400 billion a year, but argued that any surge in consumer prices would subside over the next year.

“It made salespeople [do] what is widely known as “hit bids,” “Cramer said, referring to when traders are willing to sell a stock below a buyer’s bid price.

That helped lower the steelmaker’s stock Nucor, one of the top S&P 500 winners this year. Nucor stock bounced back from its lows and closed at $ 107.37.

“Sellers overwhelmed buyers, beating all bids” to an intraday low of $ 105.51, down from $ 110 last week, Cramer said.

“I think it’s a fabulous buying opportunity. Nucor has had several years of doing well when the [business] Cycle gets going, “he said.” But the stock closed more than 1%, which put me in an opposition camp. “