When two tech giants show some unusual stock movements, it’s worth sitting up and taking notice. And if Jim Cramer, a renowned financial commentator, has something to say about it? Well, you’d better listen up!
Last week was a rollercoaster for a couple of blue-chip tech behemoths. Amazon and Meta both experienced stock dips, which was surprising given that they’d announced earnings surpassing the estimates of many a market analyst.
Cramer, known for his keen market acumen, has a golden rule: there are certain stocks you simply hang onto, come rain or shine. Nvidia is one such stock that’s earned this coveted ‘hold, don’t trade’ status in his playbook. But this week, he took to Twitter to express his disbelief regarding the quick-trigger decisions some investors made on Amazon and Meta.
Following a robust earnings announcement, Amazon’s stock took a positive leap. However, whispers of a potentially lackluster holiday season outlook caused a momentary dip in its stock value. And while this blip was short-lived, with the stock seeing a solid 15% uptick over the ensuing five days, Cramer wasn’t too pleased with the knee-jerk selling reaction of certain investors. His advice? Stay level-headed. Don’t get carried away in a whirlwind of hasty decisions driven by market jitters.
On the other hand, Meta, despite revealing stellar earnings and a plan to streamline spending, saw a slight decline in its stock value. The company boasted a healthy 23.2% rise in group revenues, marking its highest growth in a two-year span. The user base for its app family – inclusive of WhatsApp, Facebook, and Instagram – also recorded a 7% annual jump. Their revenue projection for the upcoming quarter falls between $36.5 billion to $40 billion, a number that edges past the Street’s $38 billion estimate. Yet, while Amazon basked in a post-dip recovery, Meta’s shares haven’t been as fortunate, registering a further 0.9% drop after a modest 5-day 3% rally.
The takeaway? The stock market is as unpredictable as it is exciting. Cramer’s sage advice for investors navigating these tumultuous tech stock waters is to stay informed, keep calm, and think long-term. Because, as demonstrated, today’s dip could very well be tomorrow’s surge.