“Mad Money” host Jim Cramer discusses short squeezes involving stocks like GameStop, but contends the headline-grabbing moves do not threaten the health of overall U.S. equity market. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6
Headline-grabbing short squeezes involving GameStop — and to a lesser extent, a few other companies — are really distractions for most stock market investors, CNBC’s Jim Cramer said Monday.
“As entertaining as these moves are, this stuff is ultimately a sideshow. At the end of the day, I don’t think a Reddit forum can bring the house down,” the “Mad Money” host said, referring r/wallstreetbets and other online chat rooms where some retail investors and day traders have sought to drive shares higher and squeeze out short-sellers.
In other cases, it’s less about busting short-sellers and targeting companies that are “genuinely loved” such as Blackberry and Palantir, both of which had big runs during Monday’s session, Cramer said. Blackberry closed higher by about 28% while Palantir advanced 11%.
“They’re picking undervalued stocks that have a big short position and running with them,” Cramer said. “That can cause crazy moves in a handful of stocks, but it’s not big enough to move the entire market.”
While it may be causing financial pain for hedge funds and other investors who had shorted the stocks, essentially betting shares will go lower, Cramer said the recent developments in are not what most investors should be focusing on.
“What really matters right now is that we have a stock picker’s market for the first time in 20-odd years,” Cramer said. “This is a market that rewards individual companies for being well-run, and that means stocks are less sensitive to the broader economy than they used to be.”
To be sure, Cramer said there are some stocks that could hurt the market overall if large numbers of investors decide to sell and take profits after massive runs during the coronavirus pandemic. He also acknowledged that while technology companies have been major beneficiaries of the digital acceleration spurred on by the pandemic, most of the sector has “gotten overheated at these levels.”
“The endless price target boosts for the semiconductors and for Apple are very unnerving to me,” Cramer said. “They set a high bar. That could hurt the market. There’s a whole gauntlet of stocks that have roared, from Microsoft to Tesla to Boeing to AMD, and they could really hurt us if they get hit with a big bout of profit-taking.”
At the same time, Cramer said there are signs in the market that are encouraging for investors. For example, when a company such as Kimberly-Clark reported a positive quarter, the stock moves higher, Cramer said.
“Of course, stocks go down just as much when they disappoint and that’s what happened to IBM last week,” Cramer said, leaning on these examples as evidence of what he believes is a stock-pickers market.
That’s especially important for investors to remember during a busy week of earnings, Cramer said, which includes the likes of Apple, Tesla and Johnson & Johnson issuing quarterly reports.
“With the exception of a handful of gigantic tech plays, there isn’t a stock out there that’s big enough to bring down this market,” Cramer said. “If anything, the gauntlet of earnings this week starting with J&J tomorrow, which is not at all sensitive to the economy, could be a terrific sign that many big-cap stocks are immune to a slowdown and unperturbed by the crazy action in marginal names like a GameStop or B&G Foods or even a [Rocket Companies] and Bed Bath & Beyond.”
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Avalanche (Avax) is the coin of 2021. It is technically the most advanced coin. Get in now before the 1000x
And then—–JP Sears weighs in!
https://www.youtube.com/watch?v=C6XEtQrgQUA
LIES!!
this is the same man who bragged about getting away with lying to retail investors, back in the mid 2000s
Isn't this the guy that openly admitted to manipulate the stock?
"It's Legal…and very satisfying."
Rich People: why don't the poor people invest their money
Poor People: Ok.
Rich People: …
Rich People: wait stop
i dont understand the word coming to his mouth
He didn't break anything down.
It was a setup from the start kid……. Bang!!! (Fallout New Vegas)
CNBC The dying media. now you got uncovered.
It is free market Robinhood cannot hijack the free market characteristic by using unilateral that GameStop can only be shorted and cannot go long. Why Robinhood used the authority of SEC.
Breaking news about Gamestop they Dont want you to Know
@t
Cramer the scammer.
OMG! 😱 GRANTOOLZ on Instagram legitimately recover my scammed money in less than no time, a big shout out to him
Hold the line AMC GAMESTOP
Bruh. I can’t understand a word coming out his slurred speech mouth
The biggest clown on earth
Funny jew.
But on this video he say another information you can watched
https://youtu.be/zg21CSrOMrc
We released a song about GME stock and the whole situation. Check it out now!
Who is this guy
I like
MASK MANDATE are not laws.
Make yourself feel better.
STOP WEARING A MASK.
I don't think it was just Gamestop, AMC, and Koss. It was also JanOne and probably Naked, Blackberry, Nokia and all the other stocks that were shortsqueezed to what should have been death to the shorts, except these rich losers get 9 lives.
And it's awfully fishy that the entire market seems to only crash when Gamestop is being pumped. Could it be that they somehow are doing something dirty like delaying or not allowing the BUYING of other stocks so that more selling happens allowing them to have enough money to cover what they have to put up for the gamestop activities?
Can anyone confirm that it was more than just Gamestop, AMC, and Koss?
Jimbo were coming for the house
This guy is just working for himself. He glorifies pumps n dumps and spits on the normal folks. He is a shill.