Jim Cramer Says Stocks May Experience A Pullback Amid Unsustainable Surge: 'They're Going Straight Up On Nothing
Portfolio Pulse from Benzinga Neuro
Jim Cramer, host of CNBC's 'Mad Money,' warned of a potential market downturn due to an unsustainable surge in tech stocks, particularly those touting AI initiatives. He noted that stocks have gone parabolic on no new information, with the 'Magnificent Seven' tech stocks needing to rest. Cramer linked the market rally to the Fed's pause on rate hikes, suggesting a cooling economy. He advised investors to take profits and remains skeptical about certain stocks like Devon Energy (DVN), Lithium Americas (LAC), and Confluent (CFLT). The major indices fell on Tuesday, with the S&P 500 down by 0.37% and the Nasdaq 100 down by 0.19%.
January 17, 2024 | 3:34 am
News sentiment analysis
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NEGATIVE IMPACT
Jim Cramer criticized Confluent Inc for not being profitable and having a poor last quarter.
Cramer's negative comments on profitability and recent performance could lead to a decrease in investor confidence and a short-term negative impact on CFLT's stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Jim Cramer expressed skepticism about Devon Energy Corp due to a glut in the oil market.
Cramer's skepticism based on market conditions could influence investor sentiment and potentially lead to a short-term decline in DVN's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Jim Cramer is cautious about Lithium Americas Corp, citing competition with Elon Musk.
Cramer's caution due to competition could negatively impact investor sentiment, potentially leading to a short-term drop in LAC's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70