Cramer’s Rapid Fire: Boeing, Arista, Pinterest, T-Mobile, and Mastercard
Jim Cramer delved into the latest earnings reports and market movements, offering his insights on several key stocks. He shared his thoughts on Boeing’s new CEO, Arista Networks’ strong performance, Pinterest’s softer guidance, T-Mobile’s exceeding expectations, and Mastercard’s robust cross-border volume.
Key Takeaways:
- Boeing’s new CEO, Kelly Ortberg, is a "real serious guy, hands-on operator," according to Cramer, who believes this change in leadership will propel the stock higher.
- Arista Networks is "crushing it," with its CEO Jayshree Ullal delivering a "remarkable job."
- Pinterest might be facing some headwinds in online advertising, but Cramer believes the slowdown is temporary and advertising will bounce back.
- T-Mobile continues to perform exceptionally well, exceeding expectations on postpaid net customers, although Cramer regrets not owning the stock in the CNBC Investing Club portfolio.
- Mastercard is outperforming Visa due to its diverse portfolio, including strong cross-border volume growth, making it a more attractive investment.
Boeing’s New Captain: A Ray of Hope?
Boeing, the embattled aircraft maker, reported a wider-than-expected quarterly loss and missed revenue estimates. Despite this, the stock climbed 2% following the announcement of its new CEO, Kelly Ortberg, an industry veteran.
"Ortberg is a real serious guy, hands-on operator," Cramer stated, expressing optimism about the new leadership. He believes Ortberg’s experience and leadership will be instrumental in steering Boeing back to profitability.
"But it," Cramer added, highlighting the significance of the new CEO, " [Ortberg] will send Boeing shares higher."
Arista Networks: Crushing It with Strong Performance
Arista Networks, a provider of networking solutions for large data centers, delivered an impressive quarter, surpassing expectations on both top and bottom lines. The stock soared 9% on the news.
Cramer praised CEO Jayshree Ullal’s leadership, stating, " She did a remarkable job. They’re crushing it." This strong performance reinforces Arista’s position as a leading player in the data center networking market.
Pinterest Navigates a Softer Advertising Landscape
Pinterest’s stock took a significant hit, losing more than 11%, after the social media company issued weaker-than-expected guidance for the third quarter. The softer guidance reflects potential pressure on online advertising.
While acknowledging the challenges, Cramer argues that Pinterest’s situation isn’t as dire as some might perceive. He believes the current trend in online advertising is temporary and predicts a rebound in spending, ultimately benefiting advertisers like Pinterest.
"There’s a debate on whether online advertising is weak or not," Cramer noted. "Even if a little soft, ads will be back."
T-Mobile: A Consistent Performer Despite Regretful Absence from Portfolio
T-Mobile, the wireless carrier, delivered a strong quarter, exceeding expectations on postpaid net customers. The stock rallied more than 3% on the positive news.
Despite T-Mobile’s consistent performance, Cramer expressed regret about not owning the stock in the CNBC Investing Club portfolio. He believes the company will continue to deliver strong results but acknowledges the missed opportunity.
"T-Mobile is a stock when I look at it, I feel awful about it because I knew it was going to be good the whole way [up]." Cramer admitted. "It will continue to be good, and we’re not in it."
Mastercard: Outperforming Visa with Diverse Business Model
Mastercard, the payments company, reported a strong quarter, surpassing expectations on both earnings and revenue. The stock rose 2.5% on the news.
Cramer highlighted Mastercard’s strong cross-border volume growth as a key driver of its performance. He also emphasized the company’s diversified business model, which includes businesses beyond traditional payments processing.
"Mastercard is doing better than Visa because of ancillary businesses they have in addition to cross-border," Cramer explained. "It’s a better company now than Visa."
Staying Informed on Market Moves
Cramer’s rapid-fire analysis provides valuable insights into the market’s dynamic nature and its impact on various companies. These quick assessments highlight the importance of continuous monitoring and understanding the drivers behind individual stock movements.
