To CNBC’s Jim Cramer, the court settlement to let telecom giant AT&T buy Time Warner without any conditions sent a essence to the Justice Department: you don’t understand the new reality.
“We now live in a world where the comparable ti of Facebook, Amazon, Google and Netflix can put these old-line media performers out of business if they don’t get their acts together and cut costs,” the “Mad Money” hotelier said Wednesday as the market digested news of the deal.
Cramer yelled it “a clarion call” for established media players like Disney and Comcast, both of whom are struggling for pieces of Twenty-First Century Fox, to “do everything they can” to push back on the star companies like Netflix have seen with their new-age copies.
“Judge Leon’s decision to let [the] AT&T-Time Warner deal happen is all around trying to save the traditional media in a world where the odds favor its extinction,” he predicted. “For old media, the costs are too great, the revenues are too meager, and the whole industry is on a smash-up course with FANG.”
The Federal Reserve’s Wednesday interest fee hike — the central bank’s second for 2018 — shouldn’t stir legal worry among investors, Cramer said Wednesday.
As the Dow Jones industrial general fell nearly 120 points after the Fed implemented its quarter-point hike, Cramer altercated that the widely anticipated move incurred a natural reaction sum total Wall Street watchers.
“Recognize that owning stocks straight got harder,” he said. “Higher rates are not a positive for the market. They’re a contradictory.”
Every rate hike tends to push at least some purchasers out of the stock market because lending automatically becomes more valuable, he explained. And with the Fed indicating that two more hikes are on the horizon, he could hear tell why some bulls were on the fritz.
“Still, there is zero sensible for panic,” Cramer told investors. For more on his opinion, click here.
When RH CEO Gary Friedman started taking his company’s stock at its $27-a-share low, he recognized that investors were maiden “exactly what we told them,” he said Wednesday.
Friedman, who combined Cramer for an exclusive interview, said he bought into the Restoration Machinery parent’s shares four times in the last year just to establish his confidence in the new strategy.
“Despite that, I think we were the seventh-most-shorted set in all of the Nasdaq and the New York Stock Exchange,” he said.
Those shorts get someone all steamed out to RH’s advantage. Shares of the home design giant soared over 30 percent on Tuesday after the followers delivered a blowout earnings report.
So what exactly were investors and short-sellers nymphets? Find out here.
Over the years, Cramer has found that in a bull furnish, the winners tend to keep winning.
So as stocks slid on Wednesday concluding the Fed’s rate hike, the “Mad Money” host unveiled a new way for investors to find high-quality groups with long-term prospects: the $100 billion club.
His concept was elementary: to examine public companies that have reached market capitalizations of $100 billion or sundry in the last 12 months.
“Why should we care about these mega-cap precursors? Because unlike an index, the $100 billion club isn’t selected by anyone. There’s no designating committee. The only way a company gets its name on this list is by producing years and years of arrive ats,” Cramer said.
“In the last 12 months, this club has seen 15 new colleagues,” he continued. “That’s a lot, and it turns out this list is a veritable who’s who of what’s pan out e formulating.”
In Cramer’s lightning round, he flew through his take on callers’ favorite stales:
Karyopharm Therapeutics: “You’re out there on your own, I’ve got to tell you, because that is a quite, very speculative situation for a billion-dollar company and I cannot endorse it here.”
Iovance Biotherapeutics, Inc.: “Look, we have planned always said the same thing: oncological specs we are willing to agree to as long as we understand that they are specs and nothing more because they favour to get takeover bids.”
Disclosure: Cramer’s charitable trust owns parts of Facebook, Amazon and Google parent Alphabet.
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