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Tech stocks’ Thursday declines might not last long, Jim Cramer says
CNBC’s Jim Cramer unpacked Thursday’s market action, saying that even though tech stocks took a hit, they might not stay down for long, praising recent quarters from Apple and Amazon.
“After Apple’s good quarter and fabulous guidance, and Amazon’s great quarter and great guidance, I wouldn’t be surprised if the money comes right back into tech,” he said. “Tech will be back in the saddle tomorrow.”
Stocks dipped during the session as investors analyzed quarterly reports from Big Tech. The S&P 500 declined 0.99%, while the Dow Jones Industrial Average lost 0.23% and the tech-heavy Nasdaq Composite dipped 1.58%.
Some of the day’s weakness was owed to Meta‘s earnings report, Cramer said. While he said he thinks the Facebook parent posted solid results, investors were alarmed by the company’s plans to increase spending on artificial intelligence.
Meta said it now expects capex to range between $70 billion and $72 billion, up from previous guidance of $66 billion to $72 billion. The stock suffered its largest one-day loss since 2022, with shares dropping more than 11%.
Cramer suggested the weakness in Meta spread to other related names in the group, including semiconductor giant Nvidia — which finished the day down 2%.
He contrasted Meta’s quarter with those of Apple and Amazon, both of which shared earnings results after Thursday’s close and saw shares pop in extended trading.
Cramer said he was pleased with Apple’s revenue guidance, as well as CEO Tim Cook’s claim that he expects China to return to growth during the current quarter.
Amazon reported a hefty top and bottom line beat, Cramer continued, adding that it also offered strong guidance. Wall Street was primarily focused on results from the company’s web services division, he said, and AWS managed to blow past the estimates as revenue growth accelerated from 17.5% to 20.2%.
“Maybe Meta’s spending like a drunk sailor, but Amazon’s doing just fine and efficiently putting up great numbers in the process,” he said.
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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Meta, Nvidia, Amazon and Apple.
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