Are you considering making moves in high-value stocks ahead of earnings reports? CNBC’s Jim Cramer has some advice that you might want to consider.
As an expert in all things money, Cramer wants to discourage investors from jumping the gun when it comes to trading Big Tech stocks based on earnings reports. According to him, trying to predict the outcome of these reports is essentially a fool’s errand.
Take, for example, Alphabet (Google’s parent company). Cramer points out that it’s challenging to trade this stock based on earnings because even if some data in the quarter is impressive, there’s always a possibility that management could say something “defensive” about one of its products, like Gemini. This uncertainty makes it difficult for Alphabet’s stock to see significant gains unless everything in the quarter is perfect.
He also mentions other tech giants like Microsoft and Amazon, stating that both stocks are not as secure as they used to be. Wall Street has mixed feelings about Microsoft’s AI product, Co-Pilot, and any misstep in its web services division could upset investors. As for Amazon, previous reports showed a retail sales miss, and there’s no indication that this figure has improved.
And what about Apple? Cramer believes that trading Apple stock could get tumultuous as investors are concerned about iPhone sales and business in China.
It’s not just earnings reports that investors should pay attention to. Cramer notes that many on Wall Street will be closely watching tech giants’ spending on data centers and Nvidia products.
In conclusion, Cramer advises against trading these stocks ahead of earnings reports. He likens it to a game of roulette that feels rigged, as companies don’t reveal much information beforehand.
For more insightful tips on investing, consider joining the CNBC Investing Club to follow Jim Cramer’s every move in the market. And remember, the CNBC Investing Club Charitable Trust holds shares of Alphabet, Microsoft, Amazon, and Apple.
If you have any questions for Cramer or want to delve deeper into his world, you can reach out to him through his social media channels. And as always, take caution when trading high-value stocks based on earnings reports – it’s a risky game that might not always play in your favor.