On CNBC’s “Mad Money Lightning Round,” Jim Cramer expresses his concern about Wolfspeed, Inc. WOLF, labeling the semiconductor manufacturer as a “second-rate player,” and noting that the company is “losing too much money.”
The company, headquartered in Durham, N.C., reported second-quarter losses of 55 cents per share. While this figure surpassed the analyst consensus estimate of losses of 66 cents, it represented a 400% decrease from the 11 cents per share lost in the same period last year.
Wolfspeed’s revenue stood at $208.4 million, exceeding analyst expectations of $206.36 million, albeit reflecting a 3.56% decrease from sales of $216.1 million in the prior year.
Cramer also criticized PureCycle Technologies, Inc. PCT for its failure to turn a profit.
PureCycle recently provided an update on its Ironton production facility’s output, claiming to have produced 183,000 pounds of pellets in the past two weeks.
Contrary to his reservations about Wolfspeed and PureCycle, Cramer advocates for investing in AvalonBay Communities, Inc. AVB, expressing confidence that the company has hit the bottom in terms of stock price volatility.
AvalonBay Communities recorded in-line earnings for its fourth quarter.
On the other hand, Cramer disapproves of Herbalife Ltd. HLF, asserting that a change in strategy is necessary.
In association with this, Herbalife appointed Stephan Gratziani as President, effective Jan. 2, 2024.
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Jim Cramer goes on to suggest investing in Otter Tail Corporation OTTR.
Noteworthy is the fact that Otter Tail increased its quarterly common stock dividend from 43.75 cents to 46.75 cents per share.
Furthermore, Cramer voices his confidence in Liberty Energy Inc. LBRT, underscored by the company’s favorable valuation, urging investors to maintain their positions. “Very inexpensive stock, don’t really get it,” he added.
Conversely, Liberty Energy reported results for its fourth quarter that fell below the market’s expectations.
Moreover, Cramer endorses investing in Palantir Technologies Inc. PLTR.
Palantir Technologies exceeded expectations with its fourth-quarter results.
Price Action:
- Palantir shares surged by 30.8%, closing at $21.87 on Tuesday.
- Liberty Energy shares rose by 1.1% to $19.31 on Tuesday.
- Otter Tail shares gained by 2.1%, settling at $94.14 during Tuesday’s session.
- Herbalife shares rose by 2.2%, closing at $11.54 on Tuesday.
- AvalonBay Communities shares rose by 1.6%, settling at $172.75.
- PureCycle Technologies saw its shares climb by 3.9%, closing at $4.78 on Tuesday.
- Wolfspeed witnessed a 5.6% increase, settling at $26.70 on Tuesday.
Looking for more insights? Check out the top 5 consumer stocks that could potentially excel in Q1.
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