this is a story about a man named Jim Cramer who is very smart about money stuff. He saw that people were selling shares of two big companies, Tesla and Alphabet, so he talked about it on a social media platform. He said that those who listened to the companies' talks recently know that the companies are doing great. But many people are still selling those shares, and Jim Cramer thinks there's no good reason for it. He says that in the future, we will see that these companies were smart to invest in things like artificial intelligence, and that selling now is not a good idea. Read from source...
1. Cramer's reliance on Elon Musk's Twitter-owned X platform as a source of information raises questions about the credibility of his analysis.
2. Cramer's statement about anyone who listened to the conference calls knows these companies are doing extremely well is an exaggeration and puts undue weight on the importance of listening to conference calls for stock analysis.
3. Cramer's argument that the sell-off in Tesla and Alphabet shares is driven by a desire to get small-cap stocks is unfounded and lacks empirical evidence to support this claim.
4. Cramer's recommendation against moving money out of mega-caps and artificial intelligence into "lousy" small-caps is not supported by any evidence or analysis, making it seem like a self-serving advice rather than a rational investment strategy.
Jim Cramer, the host of CNBC's Mad Money, recently slammed Tesla (TSLA) and Google-Parent Alphabet (GOOGL) sellers, arguing that those who had listened to the companies' conference calls would know that these businesses were doing extremely well. Cramer's argument was largely based on his optimistic view of Tesla's prospects, seeing the company as a 'triple threat' due to its potential leadership in self-driving, robotics, and grid electric flow. However, the sell-off in Tesla and Alphabet shares did not seem to be wholly unjustified as some critics questioned the valuation of the stock amid the recent earnings miss and sizeable benefit bestowed by the zero-emission vehicle credit.
Therefore, while Cramer's bullish stance on Tesla and Alphabet may offer some promising investment opportunities, investors should be aware of the risks and potential drawbacks before jumping into these stocks. It is crucial to consider both the macroeconomic environment and specific company performance, such as earnings reports and management decisions, when making investment decisions. As always, due diligence is key.