During a recent episode of CNBC’s ‘Mad Money Lightning Round,’ financial expert Jim Cramer weighed in on several stocks, offering his insights and recommendations to viewers.
One stock that caught Cramer’s attention was Ally Financial (ALLY). Following the company’s impressive quarterly earnings report on July 17th, Cramer advised viewers to consider buying Ally Financial.
However, when it came to Snowflake (SNOW), Cramer expressed caution. He cited recent negative sentiment surrounding the company, hinting at a potential decline in its stock price. This caution was echoed by Wells Fargo analyst Michael Turrin, who downgraded Snowflake from Overweight to Equal-Weight on August 15th and lowered the price target from $200 to $130.
Royalty Pharma (RPRX) also received a lukewarm response from Cramer. He admitted that he had hoped for better performance from the stock, stating that it had fallen short of expectations. This sentiment likely stems from Royalty Pharma’s disappointing second-quarter financial results released on August 8th. The company reported earnings of 96 cents per share, missing the analyst consensus estimate of 99 cents per share. Revenue also fell short of expectations, reaching $537 million compared to the estimated $628.26 million.
Finally, Cramer expressed a negative outlook on Core Scientific (CORZ), categorizing the company as ‘overvalued.’ He attributed this assessment to the company’s lack of profitability despite its involvement in the cryptocurrency market. Cramer suggested that investors interested in the cryptocurrency space should invest directly in cryptocurrencies rather than in Core Scientific. It’s worth noting that Core Scientific recently announced an increase in its convertible senior note offering from $350 million to $400 million, along with an option for initial purchasers to buy up to an additional $60 million in notes.
The market reacted to Cramer’s comments and the recent news, with Snowflake shares experiencing a slight decline of 0.2%, closing at $127.05. Royalty Pharma, on the other hand, saw a positive response, closing up 2.9% at $27.41. Core Scientific shares also gained traction, closing 5.2% higher at $9.26. Ally Financial shares mirrored the positive sentiment, closing up 1.3% at $41.61.
It’s crucial to remember that these are just observations and recommendations from a financial expert, and they should not be considered as investment advice. Investors should always conduct thorough research and consult with a financial advisor before making any investment decisions.
