Jim Cramer Takes Potshots At Tesla, Boeing, Says Post-Earnings 'Smacks Of Fiction': ' Horrendous Cash Flow'
Portfolio Pulse from Shanthi Rexaline
Jim Cramer criticized Tesla and Boeing for their poor cash flow figures despite their stocks rallying post-earnings. Tesla's free cash flow turned negative, falling from $441 million in Q1 2023 to -$2.28 billion in Q1 2024. Boeing also reported a negative free cash flow of -$3.93 million, worsening from the previous year. Despite these figures, Tesla's stock rose 14.42%, and Boeing's increased by 1.06%. Cramer's comments highlight concerns over their financial health and the market's reaction.
April 24, 2024 | 2:39 pm
News sentiment analysis
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POSITIVE IMPACT
Boeing's stock increased by 1.06% even as its free cash flow worsened to -$3.93 million from -$786 million year-over-year. The stock's moderate rise reflects market satisfaction with Boeing meeting lowered expectations despite safety and production concerns.
Boeing's stock rise, despite worse cash flow figures, suggests that investors are currently more influenced by the company meeting its lowered expectations rather than its financial health. Safety and production issues remain a concern but didn't deter the positive stock movement.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Tesla's stock rose 14.42% despite a significant drop in free cash flow from $441 million in Q1 2023 to -$2.28 billion in Q1 2024. Optimism seems to stem from potential new model launches and Tesla's rebranding as an AI/robotics firm.
Despite the negative free cash flow, Tesla's stock price increase indicates market optimism, likely fueled by expectations of new model launches and the company's emphasis on AI and robotics. However, the financial health concern due to the cash flow issue could pose risks.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100