Even though CNBC’s Jim Cramer always tells investors to buy stocks when they decline because of some unrelated event that shakes the market, he knows they don’t always do it.
“Today, after Sen. Marco Rubio said he can’t vote for the new tax bill and other Republican senators might be balking too, the market took a hit… how many of you took this moment and treated it as a buying opportunity? I’m betting most of you didn’t,” the “Mad Money” host said.
But if you think that a hiccup in the GOP’s tax overhaul plans could truly derail the bull market, you might be wrong, Cramer said.
Disney’s deal to buy $52 billion worth of Twenty-First Century Fox’s entertainment assets, announced Thursday, is a glaring example of a company helping itself, Cramer said.
While Cramer still thinks that Disney’s stock is too cheap vis-a-vis the company’s potential, he likes the deal because it gives Disney the scale it needs for its stock to keep climbing.
And, if the deal is approved by regulatory authorities, both stocks are “buyable” on its prospects, Cramer said.
AeroVironment’s latest product isn’t your regular stocking stuffer.
The $16,500 autonomous drone, available on Amazon starting Thursday, is a product for farmers and others in the agricultural industry, AeroVironment CEO Wahid Nawabi told CNBC.
“What we’ve done is we’ve taken drones and software analytics and turned it into an app,” Nawabi told Cramer on Thursday. “If you can turn on a tablet, push go, the drone and the software does all the rest. It’s fully automatic: take off vertically and transition to horizontal flight, come back and land on its own while you’re having a cup of coffee.”
The commercial drone comes with a one-year subscription to AeroVironment’s decision support software, included in the $16,500 price tag.
When the bank stocks sold off after the Federal Reserve raised interest rates on Wednesday even though banks benefit from rate hikes, Cramer was frustrated.
“So the Fed raises interest rates but the bank stocks have a severe, two-day sell-off?” he said. “What the heck? All because [Fed Chair] Janet Yellen didn’t say the economy is red hot, so hot that [incoming Fed Chair] Jay Powell, her successor, had better tighten four times next year instead of the suggested three? It literally is that stupid.”
As shares of major banks like JPMorgan, Bank of America and Citigroup slid in unison after the Federal Open Market Committee meeting, Cramer worried that investors were jumping the gun.
As Nutanix pushes for corporate customers to shed bulky hardware for software- and cloud-enabled data centers, the company’s co-founder, chairman and CEO compared the movement to the introduction of the iPhone.
“Think about Windows’ phone. Before [the] iPhone, nobody really knew how to really put an appliance or a phone around it,” Dheeraj Pandey told Cramer on Thursday. “When Apple showed their design pattern of what a smartphone should look like is when Android really gained credence.”
With digitization and cloud computing on the rise, Pandey said his company is convincing enterprises to make large-scale shifts to the cloud.
“Infrastructure is code. Code is programmable. Which means now, all of a sudden, you’ve taken a lot of people out of these infrastructure data centers and now you’re using a few people, a lot of automation, a lot of machine learning, to build highly efficient infrastructure,” he said.
Human interface company Synaptics just entered a deal with a global smartphone maker to produce faster, better fingerprint scanners for its phones, Synaptics President and CEO Richard Bergman told CNBC.
“We have a worldwide, top-5 smartphone manufacturer deploying our fingerprint solution in a phone early next year in mass production. And, really, it’s more secure, it’s actually faster and it’s more convenient than what you see from certain types of facial recognition solutions,” he told Cramer on Thursday.
While the company is not known in the United States, worldwide diversification is the ticket for a company like Synaptics, which is seeing increased domestic competition, the CEO said.
“They’re in a very exciting worldwide brand that’s decided to work with us closely and develop this technology and bring it forward,” Bergman told Cramer. “And that’s the type of diversification we need, much broader than just a couple customers.”
In Cramer’s lightning round, he zoomed through his take on some callers’ favorite stocks:
T-Mobile: “[CEO] John Legere made an acquisition, and frankly, I’m puzzled by it. I like T-Mobile. I did not understand this video acquisition. John, come on this show and explain it to us.”
Electronic Arts: “I like EA, but frankly, I think Take-Two is better and Activision Blizzard, an ActionAlertsPlus.com club name, got a big upgrade the other day from Goldman. You should read that report. It’s very positive.”
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Source: Tech CNBC
Cramer Remix: How to play Walt Disney Co. and 21st Century Fox