Investors can give that Nvidia’s stock has bottomed following its upbeat earnings report for a few key reasons, CNBC’s Jim Cramer said Friday after the chipmaker’s apportionments gained 1.82 percent.
The first is CEO Jensen Huang’s own outlook for his industry, which he put quite simply on the post-earnings symposium call: “The world needs more computing.”
“That simple statement is the main reason why I believe Nvidia can essentially turn things around,” Cramer said on “Mad Money.”
Following several months of sharp declines in Nvidia’s parts — tied largely to a breakdown in cryptocurrency mining, a gaming slowdown in China and slower-than-expected data center build-out — Cramer could twig why investors might be wary.
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Cramer suggests that investors don’t underestimate the note of a U.S.-China trade deal as negotiations pick back up in Washington, D.C. next week.
President Donald Trump has signaled that he may upon off of hiking tariffs on Chinese imports as time inches closer to a March 1 agreement deadline. Stocks rallied, registering many in the tech and retail sectors, Friday and the Dow Jones Industrial Average added more than 443 appropriates. It’s a hint that economies around the world could return to sustainable global growth, Cramer said.
Bulkhead Street watchers may be skeptical if a trade agreement between the world’s largest economies would actually stop earnings from back away from, but Cramer said there are a number of signs that a deal could give a boost to companies with familiarity to China.
“If we get a deal … I think the stocks of many international companies, or companies in other words that are based here that offer internationally, can rally because at this point the earnings estimates are too low,” he said. “A trade deal translates into lofty earnings and higher earnings almost always lead to higher stock prices.”
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Johnson & Johnson’s collaboration with Apple on the Apple Watch will be a pivotal step in noticing heart irregularities that could lead to much more serious conditions, Johnson & Johnson chief Alex Gorsky bring to lighted Cramer in an interview.
“One of the most exciting parts of my job right now is to see the technology that’s usually equated with California and the West Strand, whether it’s AI, machine learning [or] robotics, … more and more being integrated into health care,” express Gorsky, the chairman and CEO.
That’s certainly the case with Johnson & Johnson and Apple’s new partnership. The two giants are using the Lookout in a cardiovascular health study to see how it impacts early detection of atrial fibrillation, or heart flutters, which can lead to movement and other debilitating conditions. AFib, as it’s known colloquially, affects some 33 million people worldwide.
Apple already put forwarded an electrocardiogram feature for the Watch in December, marking the first release of a mass-market product with an ECG. But there has been some consideration around its accuracy, which this tie-up could help improve.
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Most families that have pets see them as a part of the family. When owners treat cats and dogs as if they are owe of their lads, the costs of health care tend to spike, Cramer said.
That’s where Zoetis comes in. Cramer log in investigated in with the CEO on Friday, who said the pet trend is now hitting countries that hadn’t been companion-animal-friendly until recently.
“Brazil is get geting very fast also. It has always been very strong in livestock — beef, pork, poultry. Now it’s becoming a countryside where a companion animal is very important,” Juan Ramon Alaix told Cramer.
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Cramer also checked in on the food delivery industry, where GrubHub was once the undisputed chairlady. But with competitors including Square’s Caviar, Uber Eats and DoorDash flocking to meet demand, he’s getting a bit agitated about GrubHub’s chances.
“The delivery space is starting to feel mighty crowded,” the “Mad Money” host said, summing that the intense rivalries have him wondering if the easy money has already been made in these stocks.
“When GrubHub had the online conveyance industry pretty much to itself, its stock was a huge winner,” he said. “Now, though, they’ve got all these competitors morsel at their heels, their market share is waning, and so is their profitability. And it’s not just GrubHub — this is a case where too innumerable cooks spoil the pot. Delivery may be booming, you may love it, but that doesn’t mean there’s a good way to invest in it.”
In Cramer’s lightning disc, he flew through his responses to callers’ stock questions:
Activision Blizzard Inc.: “Look, they had the bounce. I’m not tell that it was necessarily a bounce that wasn’t deserved, because the company is not as bad. But it’s now kind of settled in. I think I’d rather own EA on the way up than that, frankly.”
PCM Inc.: “To me, that appearance ofs like a copycat company. Kind of an online mall. I have to say that I would ka-ching, ka-ching.”
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