On CNBC’s Mad Dash segment, Jim Cramer said the Stifel Nicolaus downgrade of Netflix from buy to hold was “heresy, ” although he admits the stock may be too expensive at its current level. It isn’t that Cramer is bullish on Netflix; he thinks Netflix like Amazon, Tesla and other “cult stocks” are priced for perfection and are likely to get sold by the end of the year by money managers in favor of stocks like Celgene or Regeneron. However, Netflix seemed somewhat of a golden boy stock that Wall Street loved.
“Everyone is freaking out” about Workday reporting it expects 40% growth. While that sounds great for any company, the fact this is a step down from 50% to 60% growth rates have causes investors to sell the stock. Cramer said this is yet another example of a “hot” stock that cannot afford even murmur about deceleration, or it will get slammed. Cramer thinks it is likely that investors are getting out of the cloud and going to other tech names like Sandisk, Splunk or Western Digital.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
Cramer reiterated his love for Apple, saying it is a stock that should not be traded, but should be a core holding in a portfolio.
