CNBC’s Jim Cramer said Friday that several tech firms that have gone public in recent years are beginning to realize their wrongdoing, and warned investors to move their dollars elsewhere.
“San Francisco companies are just starting to realize that they have overexpanded and, in many cases, some of these companies should never have gone public,”mad Moneysaid the host.
“Especially for the most bogus companies invented in the last three years, I say they should never have gone public, but in many cases they should not even exist. Harsh? Maybe, but I am yours. Trying to help you defend the capital,” he said.
Cramer’s remarks come after spending a week in San Francisco interviewing tech leaders. He said on thursday That many people told him that there are imminent layoffs in Silicon Valley and that some companies are planning to relocate outside of California.
Looking ahead to next week, Cramer said he has his eye on federal ReserveThe next hike in interest rates will be known in the two-day meeting on Tuesday and Wednesday.
“If they act more aggressively, will the market welcome that news, or will we get another selloff? We will have to wait and see,” he said.
Cramer also previewed next week’s slate of earnings and investor meetings. All earnings and revenue estimates courtesy of FactSet.
- Q4 2022 earnings released after the end; Conference call at 5 p.m. ET
- Estimated EPS: $1.37
- Estimated Revenue: $11.61 billion
Cramer said he expected a Tour de force conference call. If the stock later goes down, “we know the technology has sunk and the depth hasn’t gone down yet,” he said.
Tuesday: Confirm, DuPont
Cramer said the meeting should shed some light on the status of buy now, pay later.
,If [CEO Ed Breen] Say we’re going into a recession, I want to know how long,” Cramer said.
Thursday: Kroger, Adobe, Honeywell
- Q1 2022 earnings TBD released on time; Conference call at 10 a.m. ET
- Estimated EPS: $1.29
- estimated revenue; $43.85 billion
Kramer said investors should not bet against the grocery company despite rising food inflation.
- Q2 2022 earnings released after the end; Conference call at 5 p.m. ET
- Estimated EPS: $3.31
- Estimated Revenue: $4.35 billion
“Adobe is a terrible long-term growth story, so if it gets hit you really want to buy something on a weakness, but don’t count on it to turn any time soon.”
Cramer said he doesn’t plan to buy shares of Honeywell for the charitable trust, but will consider it if the stock falls.
“I’d like to hear about whether the company continues in the tradition of late [former CEO] Michael Niedorf, the man who built this health care powerhouse,” Kramer said.
Disclosure: Cramer Charitable Trust owns shares of Honeywell.