Dow Inc. (DOW): The Only Company Not Doing Well Is Dow, Says Jim Cramer
Dow Inc. (NYSE:DOW) is one of the biggest chemical companies in the world. Its shares have lost 36.3% year-to-date as the firm has struggled from macroeconomic concerns, a sluggish industry, and weak earnings reports. Dow Inc. (NYSE:DOW) stock fell by 17.5% after it missed analyst sales estimates for its third quarter guidance. After the earnings, Cramer outlined that the firm was suffering from a very unusual negative cycle. This time, he shared a discussion he had with Dow Inc. (NYSE:DOW)'s CEO:
'I don't know why they're looking for three cuts. Honest to god. The economy's fabulous. It's fabulous. The only company that's not doing well was Dow. It's only gonna miss the numbers.
Here's what Cramer said about Dow Inc. (NYSE:DOW) after its earnings report:
'But then, Dow Chemicals, just, Dow, no longer Dow Chemicals. The chemicals are bad. The plastic is bad. So Jim Fitterling had to cut the dividend. I had said that this could happen. I didn't want it. But it's lower for longer, for three years, it's a very unusual negative cycle. And I've got to tell you, for all the good news we hear about the industrial economy, it's not helping.
Photo by Samantha Gades on Unsplash
'[On why the industry is struggling] China dumping. The pricing, the first month was good, but then on Liberation Day, pricing fell apart. There's no coming back. It's really a shame because Jim Fitterling is a good CEO, but wow.'
While we acknowledge the potential of DOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
a minute ago
- San Francisco Chronicle
Lexinfintech: Q2 Earnings Snapshot
SHENZHEN, China (AP) — SHENZHEN, China (AP) — Lexinfintech Holdings Ltd (LX) on Thursday reported net income of $71.4 million in its second quarter. On a per-share basis, the Shenzhen, China-based company said it had profit of 40 cents. The online consumer finance company posted revenue of $500.8 million in the period. _____
Bloomberg
a minute ago
- Bloomberg
India Responds With Outrage After Trump Doubles Tariff
India responded with outrage to Trump's move which doubled tariffs on the country to 50% as a penalty for its purchases of Russian oil. 'We reiterate that these actions are unfair, unjustified and unreasonable,' a spokesperson for the Ministry of External Affairs said, while opposition leader Rahul Gandhi called Trump a bully. Indian stocks fell for a third straight session, and analysts said that investor sentiment — already unsettled by regulatory action against Jane Street — may remain weak unless Trump changes his mind or a deal is struck in the next few weeks. Politically, it's seen as difficult for India to overhaul its oil policy even though Trump's decision has somewhat spoiled the math around the benefits of Russian crude. Analysts expect the additional tariffs to shrink its GDP by as much as a percentage point. Stocks elsewhere in Asian and global equity-index futures climbed after Trump's threat of 100% tariffs on chip exporters came with exemptions for companies like Apple that invest in the US. While his sweeping new tariffs officially took hold Thursday, traders cited optimism that these exemptions may mean limited disruptions to key supply chains. One of Trump's highest tariffs is now in effect on Switzerland after the government failed in its last-ditch effort to get the US president to lower the rate. The 39% surcharge on exports – from Swiss-made luxury watches to Nespresso coffee capsules – is the highest among developed countries and compares with just 15% on the neighboring European Union.
CNN
a minute ago
- CNN
US Open will offer the largest purse in tennis history at $90 million
The champions of this year's US Open are set to enjoy the biggest payday in tennis history. Tournament organizers announced on Wednesday that the men's and women's singles champions will each earn $5 million at this year's tournament, a 39% increase on the $3.6 million awarded in 2024. Overall, the tournament's prize purse will top $90 million – the largest in tennis history and a 20% increase on last year, which stood at $75 million. There will also be sizeable increases in pay for those who progress to the latter stages of the competition, with singles finalists earning $2.5 million (a 26% increase), semifinalists $1.26 million (a 26% increase), and quarterfinalists $660,000 (a 25% increase). For the first time at the tournament, winning teams in the men's, women's and mixed doubles will receive $1 million in prize money. The increase in prize money comes after some of the world's top players reportedly sent a letter to organizers of the Australian Open, French Open, Wimbledon and the US Open requesting a 'substantial increase' in prize money. 'The US Open has made a deliberate and concerted effort to ensure double-digit percentage increases from 2024 in all rounds of all events for all players, while at the same time significantly increasing the percentage of prize money for athletes playing deep into the singles draws,' said a press release on the US Open website. Organizers have also set aside $5 million to put towards player expenses, including a $1,000 travel stipend for each player and two hotel rooms at the official player hotel (or $600 per day for staying at alternative accommodation). Qualifying for this year's US Open begins on August 18, with the main singles draws getting underway on August 24 and concluding on September 7. Sweeping – and controversial – changes have been made to the mixed doubles competition this year, which will now be staged on August 19 and 20 and include some of the biggest names in the sport. Among some of the all-star pairings will be Carlos Alcaraz and Emma Raducanu, Jannik Sinner and Emma Navarro, Casper Ruud and Iga Świątek, and Aryna Sabalenka and Grigor Dimitrov. The rationale is that top players will then be available to appear in the mixed doubles, attracting more fans and allowing broadcasters to spotlight the competition before main draw singles play begins. However, defending champions Sara Errani and Andrea Vavassori called the format change a 'pseudo-exhibition' and 'profound injustice' which 'disrespect(s) an entire category of players.' Eight pairs of the 16-team field have been selected based on their combined singles ranking, while eight are wild-card entries. The US Tennis Association told CNN Sports that the new format will 'elevate mixed doubles with a bigger spotlight and provide a greater opportunity to inspire more people to play and grow the sport.' It also said in a press release that 'the world's best players will have the opportunity to compete for this title and the multi-million dollar purse without having to juggle mixed doubles with their singles and doubles commitments.'
