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CNBC
14 hours ago
- Business
- CNBC
Jim Cramer on Abercrombie and American Eagle earnings: Limit downside on teen retailers
CNBC's Jim Cramer on Friday reviewed recent earnings from teen-focused apparel makers Abercrombie & Fitch and American Eagle Outfitters. While he was more optimistic about the former, he was generally cautious on the group. "I want you to limit your downside with these teen retailers. You never know when a company like this may go from sink and swim to just plain sink, at least for the next quarter," he said. "But to me, Abercrombie — I think that's worth buying perhaps as soon as next week." According to Cramer, teenage consumers are "notoriously fickle," a dynamic that makes it hard to bet on stocks that rely on them. Retailers and consumer-oriented companies broadly have expressed worries about the economic impact of President Donald Trump's tariffs, as most manufacture abroad. Abercrombie & Fitch is down 47.49% year-to-date while American Eagle is down 34.25%. He was disappointed with American Eagle's quarter — the retailer missed on earnings, recording a $75 million write-down in spring and summer merchandise. The company also reduced its full-year guidance before the report because of macroeconomic uncertainty. Cramer said it was strange that American Eagle announced a $200 million buyback while business is weaker. Retailers need flexibility, he said, and American Eagle's buyback will give the company less flexibility. Abercrombie & Fitch managed to beat the estimates, but it cut guidance as it gears up to weather steep tariffs. However, Cramer expressed confidence in CEO Fran Horowitz, who has managed to overhaul the company and execute a substantial turnaround after the brand struggled for years, having previously garnered a reputation for exclusivity, toxicity and racism. He was impressed with the retailer's efforts to diversify its supply chain. He noted that its offshoot brand, Hollister, grew same stores sales while they declined for the namesake brand, which is targeted at slightly older crowd. If investors believe Hollister can keep up the momentum and the flagship brand can improve, Cramer said the stock could be bought. He also said a Monday JPMorgan event featuring top Abercrombie management could move the stock. "I don't usually recommend options here, but I can tell you that teens are so fickle that if I were to buy Abercrombie ahead of the talk at JP Morgan on Tuesday, I actually might even do it with deep in the money calls," Cramer said. Abercrombie & Fitch and American Eagle did not immediately respond to request for comment. Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
CNBC
15 hours ago
- Business
- CNBC
Cramer's Lightning Round: QXO can go higher
QXO: "I think this stock actually is going to go higher. Why? Because it's Brad Jacobs. He will not let it stay down here." Gentex: "I cannot believe how low its gotten. It's a very good company." Energy Transfer: "ET is an absolutely terrific company...I do prefer ONEOK more." Trade Desk: "I should have told people to pull the trigger after that one unfortunate quarter that Jeff Green had." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
CNBC
2 days ago
- Business
- CNBC
Jim Cramer says this is the easiest way for the market to get out of its tariff 'nightmare'
CNBC's Jim Cramer said Thursday the court fight over President Donald Trump's tariffs temporarily injects more uncertainty into the stock market — but, he argued, it ultimately could be a gift to investors who worry about the effects of the White House's trade policy. "Even if you believe in fair trade, not free trade, as I do, you have to wonder how we're going to get any meaningful deals now that our trading partners know the courts might invalidate the whole tariff agenda," Cramer said on "Mad Money." "In that sense, but only in that sense, maybe the judiciary shooting down the tariffs is the easiest way out of this nightmare." Cramer's comments came after the S&P 500 and Nasdaq Composite both ended Thursday's session up 0.4%, well off their highs of the session. Early trading action on Thursday morning suggested Wall Street was headed for a strong day, thanks to artificial intelligence bellwether Nvidia's better-than-expected earnings report the prior evening and a ruling from the U.S. Court of International Trade that struck down most of Trump's tariffs. However, the positive sentiment fizzled as the day went on, Cramer contended, because uncertainty over the legal challenges to the tariffs increased. The Trump administration vowed to fight that lower-court ruling, and said it could ask the Supreme Court to pause the decision as soon as Friday. Then, on Thursday afternoon, an appeals court ruled in favor of the White House and temporarily paused the Court of International Trade's ruling. "Right now, the administration has to hope that our trading partners believe the Supreme Court will uphold the tariffs, or that another lawsuit against the next iteration of tariffs will somehow fail. Because if the judiciary shoots down the tariffs, Trump has zero cards to negotiate new trade deals," Cramer said. The reason why that matters for the stock market is hope that the U.S. would soon strike trade deals with many countries — leading to lower import duties and more clarity for businesses and consumers alike — has helped fuel the S&P 500's rally in recent weeks. The index is up nearly 19% from its April 8 close, the day before Trump voluntarily paused most of the "reciprocal" tariffs that drove the market into a four-day plunge. "Then again, if the [Supreme Court justices] do side against the White House, we don't need to worry about retailers raising prices across the board to pass on the tariff pain," Cramer said. When asked to respond to Cramer's remarks, the White House pointed CNBC to comments made earlier Thursday by press secretary Karoline Leavitt. "The Supreme Court must put an end to this," Leavitt said at a press briefing. The judges sitting on the U.S. Court of International Trade "are threatening to undermine the credibility of the United States on the world stage," Leavitt also here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
CNBC
3 days ago
- Business
- CNBC
Nvidia CEO Jensen Huang explains why chip exports to China are strategically important
In a Wednesday interview with CNBC's Jim Cramer, Nvidia CEO Jensen Huang explained why he thinks it's necessary to export his company's artificial intelligence technology to China, saying trade with the country is vital if the U.S. wants to be a global leader in AI. "That's probably the most important strategic reason to be in China," Huang said. "Because there are so many developers there and because the world is going to adopt technology from one country or another — and we prefer it to be the American technology stack." Nvidia posted better-than-expected earnings and revenue Wednesday night, sending shares up in extended trading. While the quarter showed that demand for Nvidia's technology continues to grow, Huang said on the call that President Donald Trump's restrictions on its chips mean that the "$50 billion China market is effectively closed to U.S. industry." Huang told Cramer the regulations will lead to the loss of billions in revenue to Nvidia and tax revenue to the U.S. But more importantly, he emphasized, losing out on the Chinese market has lasting global ramifications for the U.S. Historically, he said, the platform that succeeds is the one that has the most developers — and China is home to 50% of the world's AI researchers. "We want every developer in the world to prefer the American technology stacks," Huang said. Once that happens, he continued, "American technology stacks will run AI the best all over the world." Huang claimed Nvidia will "keep our dialogue going" with the Trump administration. "We understand the technology best, and we understand how computing works," Huang said. "We understand how AI works, and we've been in China for 30 years, and so this is an area that we have a lot of, a lot of expertise, and we're going to continue to share that." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest The CNBC Investing Club Charitable Trust owns share of Nvidia.
CNBC
3 days ago
- Business
- CNBC
Cramer's Lightning Round: Leidos is a buy
Leidos: "I like it...I am worried that the defense budget may be cut, but this is homeland security. I think it's a good opportunity, the stock's come down a great deal. Let's pull the trigger." Interactive Brokers: "I say buy." NuScale Power: "Why don't we just buy GE been straight up and so has GE Vernova, but GE Vernova's got a book of business. That's what I like." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest The CNBC Investing Club Charitable Trust owns shares of GE Vernova.
