CNBC’s Jim Cramer reviewed a number of pessimistic sentiments on Wall Street over the past several months that have largely blown over, saying on Monday that sometimes market negativity is overhyped.
“You can always find something wrong if you really want to. It’s so easy that you can gin up mistakes on a daily basis,” he said. “Funny thing, though, when what went wrong goes right, nobody acknowledges it.”
Cramer primarily focused on a number of negative theories about tech companies, including Alphabet. In the spring, investors were worried the Department of Justice’s monopoly ruling meant that the search giant would be forced into a breakup that would be undoubtedly punitive, Cramer said. But the stock jumped last week after a judge ruled Alphabet would not have to divest its search business. Cramer acknowledged that he even made a mistake in selling Alphabet shares for the CNBC Investing Club Charitable Trust.
Amazon and Apple‘s stocks also fell prey to negative theories, Cramer said, but their shares eventually recovered. Amazon took a hit as some investors feared its web services division was falling behind Microsoft‘s Azure. But the market simply moved on from this concern and focused on the positives, he said, and suggested that some investors are waiting to see how much more revenue Amazon Prime can bring in now that it’s tightening restrictions on shared accounts. Apple also weathered losses as investors worried its artificial intelligence strategy was much weaker than its peers. But the stock climbed after it became clear that Google could maintain its lucrative deal with Apple to set its search function as default on iPhones, Cramer said.
Cramer also touched on Nvidia, where the stock has seen losses after earnings even though it beat expectations. He mentioned that an analyst from Citi cut Nvidia’s price target on Monday, citing competition from other artificial intelligence chip makers like Broadcom. Cramer said he believes in owning both Broadcom and Nvidia, but that the latter’s price performance is “so much better than any other company.”
“I bet we’ll look back on that Citi price target cut and realize it was a mistake, just like the others,” he said.
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Disclaimer The CNBC Investing Club holds shares of Apple, Amazon, Nvidia, Microsoft and Broadcom.
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