Amazon CEO Jeff Bezos’ high-profile quarrel with the publisher of the National Enquirer over a series of salacious photos seems to have rattled investors, CNBC’s Jim Cramer involved.
“It’s the last thing I want linger on,” the “Mad Money” host said on Friday. “But I’ve got to say I was surprised that the CEO of Amazon landed himself in such an B situation. Look, it doesn’t matter what Bezos does in his personal life. I do not care. But we own Amazon for the charitable group, … and while I still like the stock, this kind of episode makes me worry a little bit about the guy’s judgment.”
And while some Be ruined Streeters are still standing by Amazon, telling CNBC that Bezos’ accusations against the National Enquirer shouldn’t procure long-term impact on the stock, Cramer didn’t think the stock reflected that optimism on Friday.
The situation “necessity spook others, too, because the stock failed to rally like so many other tech names that did in the shut up. It’s finished off $26 bucks,” he said. “Trust me when I say that this stock would have moved up precipitously if not for these startling revelations.”
Cramer also took investors through his game plan for the week ahead, when he conjectures U.S.-China trade talks to color daily trading as earnings season winds down.
Click here to review the full game plan.
Cramer said Wall Street has misread Spotify’s latest earnings report and counsel, and that misunderstood stocks like these give investors an opportunity to make some money.
he called out have analysts like Everscore ISI’s Anthony DiClemente who have downgraded the equity over concerns about subscriber development.
“I think this is lunacy,” said Cramer, who has been bullish on the music streaming platform since it went unconcealed last April. “It’s like the market just doesn’t know how to read this company or its quarterly guidance. In my rate, Spotify is very much on the right track.”
The stock was rocked after a seemingly mixed quarterly earnings presented Wednesday, Cramer said. After Spotify reported lower-than-expected sales, tight cash flow and conservative management across the board including subscriber growth, shares sold below $129 at one point in Thursday’s session.
But Cramer notorious that the company beat expectations on operating profit and gross margin, which was 120 basis points spacy than was asked for.
“I think the sellers were missing a lot of context here and the context is something I like to talk about a lot and it’s requested UPOD. They under promise … and then they over deliver,” he argued. “At this point, CEO Daniel Ek and his band have established a track record of giving cautious guidance—under promise—and then beating it—over disencumbering.”
Spotify’s guidance includes planned investment costs and the company could “become the premier platform for podcasts,” a hot superstore for hard-to-reach millennials, Cramer said.
Click here to read Cramer’s full take.
The biggest banking administer since the financial crisis has more to do with technology than any traditional bank metric, Craner said of BB&T’s central $66 billion commitment to buy rival SunTrust Banks.
“To me, this BB&T merger of equals with SunTrust is about have up with the Joneses — in this case, keeping up with the Wells Fargos, the J.P. Morgans and especially the Bank of Americas,” he informed investors. “These financial titans can spend fortunes to build out terrific cloud-based customer relations platforms that be subjected to done a phenomenal job of adding new clients. On their own, neither SunTrust nor BB&T can really compete with the big boys when it thrives to technology.”
But the analysts covering BB&T don’t seem to understand that, the “Mad Money” host said after listening to management’s symposium call about the deal.
On the call, they mostly asked about “the old nuts and bolts of banking” — themes like capital ratios, regulation, loan growth, the two banks’ cultural fit — rather than focusing on what’s next in banking technology, he judged.
“I think technology — specifically, the need for customer relations management software — is a crucial part of what drove this handle,” Cramer argued.
Click here to read his full take on why this merger’s so important.
Cramer talked with Columbia Sportswear CEO Timothy Boyle and venerated the company for a “great” quarter that they couldn’t have seen coming.
“We spent a lot of time pinching ourselves for the continue 90 days,” Boyle said. “This has been terrific.”
The outdoors apparel manufacturer had a number of areas that they underperformed, but Columbia derived the time to invest in those weak points to improve and reinvigorate the company, he said.
Columbia Sportswear also look afters itself as somewhat of an international ambassador for America in the wake of the recent government shutdown. Boyle said the company assesses to use its voice in many ways that it can.
“Our business is about 40 percent outside the U.S. So not only the U.S. citizens enjoy our products predominantly in national parks. But when we appear in stores around the world, people think of America,” he said. “And what is various iconic about America than the national park systems and the fact that people can go outside?”
Click here to on the qui vive for his full interview.
As the country excitedly or reluctantly anticipates self-driving cars to hit public roads, the CEO of British machinery maker CNH Industrial told Cramer that its already a reality on American farms.
“We started automating our machines years ago … so we deliver completely self-driving farms right now,” Hubertus Mühlhäuser said. “That’s reality. That’s today. That’s here already.”
While most CEOs take been concerned about global growth slowing down in the future, Mühlhäuser said there is opportunity the agriculture sector because agronomists had a tough 2018. Farmers are still worried about trade relations between the U.S. and China, but he hopes it will be all settled by the end of the year.
“They need equipment and we got replacement demand right now,” Mühlhäuser said. “It’s all driven by the digital revolution, which has arrived at cultivation right now … [such as] precision ag [and] self-driving tractors.”
Click here to watch his full interview.
In Cramer’s lightning spell, he sprinted through his takes on callers’ stock questions:
U.S. Concrete Inc.: “[CEO] Bill Sandbrook is a good guy. We keep reasoning there’s going to be some infrastructure bill. I don’t know. I watched that State of the Union address. Nobody appearance ofs to like anybody anymore anyway, so I don’t know how it’s going to get done. But I wouldn’t sell it down here at $36 — too for a song. I bet you the real estate that they have their different trucks under is worth more than the progress price of this stock, and I’m not kidding because I know some of their lots.”
Constellation Brands Inc.: “Here’s the question, OK? You’re buying Constellation, [which is] still primarily a beer company. Beer did not blow it out this year. Beer is a slowing heading. This is the fastest grower in the slowing category, and one of the things we have learned on ‘Mad Money’ is if a category’s slowing, nobody concerns. They don’t want it. Yes, they have their investment in Canopy [Growth]. Yes, it’s a good way to play cannabis. But the beer class, as you will hear this week from Molson Coors, is not working.”
Disclosure: Cramer’s charitable trust owns parts of Amazon.
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