Jim Cramer of CNBC’s Mad Money has expressed serious concerns about Snap Inc.
Cramer’s most recent commentary reflects a bearish stance towards Snap’s declining performance, and his skepticism regarding Albemarle amid broader industry challenges.
Cramer labels Snap ‘irrelevant’ amid plummeting shares
Snap Inc. stock has fallen nearly 50% over the past month. It went from $17 on July 10, to $9 in premarket trade on Tuesday.
Cramer has labeled Snap as “not investmentable” and “irrelevant” due to this dramatic decline.
Cramer is disappointed by Snap’s poor guidance for the future, despite the company’s slightly better than expected second-quarter results.
The Santa Monica-based company, valued at $15 billion has projected earnings up to $100 millions for the current quarter. This is below analysts’ expectations of $10 million.
Snap’s CEO Evan Spiegel attributed this shortfall in his recent letter addressed to shareholders to “legal and regulation burdens” as well as a “weaker environment for brand advertising”.
Snap’s inability to pay a dividend further reduces its appeal for income-focused investors.
Cramer warns against Albemarle
Cramer also expressed concerns about Albemarle Corporation – a major player within the lithium mining industry.
Cramer acknowledges Albemarle’s strong position on the lithium market but believes that the company’s focus on electric cars (EVs) is premature.
He cites issues like inadequate charging infrastructure as major barriers to the adoption of EVs.
Albemarle, unlike Snap, offers a dividend yield 2.13%. This makes it more attractive for income investors.
The stock has seen a significant decline, down 45% since its peak in mid-May.
The company’s earnings for the second quarter fell dramatically, to just 4 cents a share. This was well below the analysts’ forecast of 53 cents a share.
This is a significant decline from the $7.33 earned per share in the same quarter of last year. This reflects broader financial struggles.
Cramer’s advice shows his cautious approach towards these stocks.
Cramer’s comments suggest that investors who are considering Snap should reevaluate their positions because of the company’s financial instabilities and poor future outlook.
Albemarle’s dividend yield may be attractive, but the company’s recent financial performance, as well as sector-specific challenges, warrant a careful examination.
Snap and Albemarle both face significant obstacles that could affect their long-term performance.
Cramer’s insights offer investors a crucial perspective to help them navigate turbulent waters and make informed investment decisions.
This post Jim Cramer dismisses Snap, Albemarle Stocks: Here’s Why These Picks Are Off His Radar may be modified based on updates.
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