[ad_1]
CNBC's Jim Cramer on Monday said it was "counterproductive" for the stock to rally to a profit report. He highlighted Alphabet, among other actions, to illustrate his case.
"A slight decline before the gains may be the best vaccination against a selloff," said the animator of "Mad Money." When stocks, like Google's parent company, arrive too hot, "it sounds like a landing jet on an aircraft carrier that can often miss the deck and end up erasing, as 3M l & # 39; Last week and Alphabet did it tonight ".
After hitting a new high of $ 1,296.97 during the trading session, Alphabet's shares fell nearly 8% after trading hours. The tech giant has announced a first quarter earnings per share of $ 11.90 per share, up from $ 10.61 expected. However, reported revenues of $ 36.34 billion were below badysts' estimates of $ 37.33 billion.
Before Monday's close, the stock had climbed nearly 10% in April. Cramer called this a "frightful staging".
"[It’s] Another clbadic scenario of the worst-case scenario, although Alphabet's stock trend is to be beaten by earnings and then move on to the next three months until it is hit again. It is the Sisyphus of modern growth titles. "
Cramer said that there had been a similar action in Intel 's top – speed race before the call for profits last Thursday, when the company revealed lower revenue forecasts than planned. The company's computer and personal computer activities did not work well and the stock price fell 9% in one day, he said.
"I do not see Intel coming back in the near future, especially if its main rival, AMD, tells a good story when it reports on its activities this week," Cramer said.
Nearly one-third of the S & P 500 companies are expected to publish their results this week. If a stock appreciates during the quarter and the results are bad, investors could be prepared for a sharp decline, warned Cramer.
Monday's main indices all rose. The Dow Jones Industrial Average added more than 11 points, the S & P 500 rose 0.11% and the Nasdaq Composite 0.19%. The last two averages have both set new highs for 52 weeks.
WATCH: Cramer Explains Why It Could Be Difficult For Stocks To Rally In Call For Results
Disclosure: The Cramer Charitable Trust holds shares of Alphabet.
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to dive into the world of Cramer? Hit it!
– Jim Cramer Twitter – Facebook – Instagram
Questions, comments, suggestions for the site "Mad Money"? [email protected]
[ad_2]
Source link