Cramer warns investors not to group all stocks of the same sector together – ‘No two stocks are truly alike’

Cramer warns investors not to group all stocks of the same sector together – ‘No two stocks are truly alike’


CNBC’s Jim Cramer on Wednesday told investors that despite what might be happening in the market, they shouldn’t judge a stock based on its industry peers’ performance.

“These days, it feels like up to 90% of a stock’s performance on a given day comes from its sector, something on down days that feels like a heavy gravitational pull,” he said.

“I want to remind you that no two stocks are truly alike and, more important, the sector analysis everyone lives by these days is often a travesty of a mockery of a sham,” he added.

The “Mad Money” host’s comments come after the Dow Jones Industrial Average rose on Wednesday, while the S&P 500 and the tech-heavy Nasdaq Composite both fell slightly.

The market, which has been roiled by a vicious cycle of sell-offs as investors fear a recession is coming, saw several sectors tumble. Chipmakers took a hit after Bank of America downgraded several semiconductor stocks. Cruise stocks declined after Morgan Stanley made a hefty cut to its price target for Carnival.

Cramer said that there are several stocks that shouldn’t be downgraded due to their competitors’ poor performance, naming Disney, Meta, AMD and Nvidia specifically.

“Look, I’m not guaranteeing the bottom in Disney, or Meta, or AMD or Nvidia,”  he said. “But the bottom line is stocks are all different.”

Disclosure: Cramer’s Charitable Trust owns shares of Disney, Meta AMD and Nvidia.



Source

Space startup Varda raises 7 million in funding to make drugs in orbit
Business

Space startup Varda raises $187 million in funding to make drugs in orbit

Pavlo Gonchar | Lightrocket | Getty Images Space startup Varda announced on Thursday that it has raised $187 million in Series C funding, led by venture capital firms Natural Capital and Shrug Capital, to continue advancing drug manufacturing in space. The latest round included participation from Peter Thiel, Lux Capital, Khosla Ventures and Caffeinated Capital. […]

Read More
How family offices are betting on the sports boom from fantasy apps to pickleball courts
Business

How family offices are betting on the sports boom from fantasy apps to pickleball courts

Key Points A third of investment firms of the ultra-rich have invested in sports, according to a new family office survey by BNY Mellon. While billionaire sports-team buyouts get the headlines, family offices are increasingly investing in adjacent assets like live-viewing venues and betting apps. Here’s how the family offices of ultra-rich sports team owners […]

Read More
Delta’s summer travel outlook tops estimates as CEO says high-end demand is holding up
Business

Delta’s summer travel outlook tops estimates as CEO says high-end demand is holding up

A Boeing 767-332(ER) from Delta Air Lines takes off from Barcelona El Prat Airport in Barcelona on Oct. 8, 2024. Joan Valls | Nurphoto | Getty Images Delta Air Lines trimmed its 2025 profit forecast as it deals with lower-than-expected demand this year and the industry manages a glut of flights, but the carrier’s outlook […]

Read More