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NYSE:GME, GameStop, Stock Intel, IBM, GME: Jim Cramer's Stock Market Breakdown – Jan. 22

So what are you watching? Well, i’m. Looking at people taking their cue from ibm and intel uh disappointing quarters, both uh intel saying basically we’ve seeded the lead to amd and we’re going to come back in 2023., uh ibm, saying: listen, it’s going to be a little bit while before we’re able to turn Around the core fourth quarter did not have good numbers, so what’s happening, catherine, is is that if you have two negative companies that are, i mean really negative companies that are casting a poll on things. Then people start saying well wait a second now there’s too many space. We have a greg with face back um. You run liberty, media spack. That is you know. Just incredibly oversold uh, i mean over boy there’s 30 sucks up 30, because there’s it’s oversubscribed what’s happening is. Is that there’s an over subscription subscription for the dices stuff for the specs, for the uh companies that sell it and very absurd multiples and then there’s much less interest in the companies that are inexpensive in part? Because if you take a look at intel, which was incredibly inexpensive and take a look at ibm, was incredibly inexpensive, they turned out to be nuts, but not so perfect uh. So people want to stay away from tried and true and they want to go expected as possible. Jim we’ve got an interesting story developing outside out of australia and that’s google threatening to shut down its search engine in australia.

If australia makes the company pay local publishers for news, which is a proposed law now, while i understand the business part of this, could this be seen as google throwing around its weight as a tech giant? Yes, absolutely i mean look. They’Ve got a they’ve, got something to say and to say the saying is: listen, we don’t need to carry it. You know, look like you, don’t we’re, not paying you. We don’t need you, and this is something that i learned earlier on at the street. When uh america online was paying us a huge amount of money when i started the street and then one day uh pittman came in, he was running aol and presented this great document that’s. What all things are going to do for us, and the last page was that we paid them. We had to pay them two million dollars now uh. These australians are, i think, that they’re they’re playing on fire, because that they’re locked lucky they’re not charged, and i think that people understand uh, that big tech is gon na have its way because they can always say, hey, listen, who says you have to be on. Google, i mean yeah there’s plenty of other outlets, so i mean what looks like a monopoly, isn’t and that’s always going to win. I think in the courts csx this morning was your mad dash your reported earnings and the product, the it’s not the profit slip, but there was demand for deliveries of shipping containers.

Jim buy seller hold this stock. Oh, you want to buy that the the rails are uh, just the the rails, like with union pacific. If you think the economy is going to come back, then you buy union, pacific or csx. You just buy them. We put union pacific in our bullpen yesterday and here it comes down and it’s getting very near where i want to buy it. Was it 221 not that long ago, suddenly it’s a 205? If it could get to 200, then i think you really got a good story. Uh you have to look at the cargos and all the cargos. That matter are still negative, but we know from the demand side that they’ll be positive and that’s the the and what i’m going to talk about the carrier, the what they carry that has to do with home building and what they carry that has to do with. Autos and those are two of my hottest sectors that i’ve been talking about and autos very much participate. Your stop trading this morning was american eagle gym. Quite frankly, this is not a stock that we cover often and it’s, not even one that i really check when i’m looking at retail, but it is up 60 over the past year and it’s and i’m wondering if this is a good name to add to pad Your portfolio, if you need a retail name well i mean you have to look at this airy uh line of clothes that they have.

That is just you know, taking the world by storm, i mean it’s, incredible and there’s a lot of people. You ask younger people uh, who have a little bit of means and they’re gon na say that they shop at american eagle with this airy line. Uh, would i add it uh yeah. I would, i think, it’s gon na the presentation yesterday was masterful it’s uh you’ve got the blessing of of the best analysts uh in retail, on the street matthew boss from jp morgan. Remember, and what did he like me like uh? We just think he liked. All of or in burlington he caught that one um five below he caught all the major department stores that worked. He got you out of them and he likes american eagle and he liked l brands and those were really unbelievable calls. So i think yes, even though it’s a 52 week high, i think the suckers hard so let’s move into earnings. Jim intel reported earnings that beat expectations, but the shares were slightly volatile. Last night, following the leap – oh sorry, release of earnings early is this reported hack that we saw a concern for the company. Did it overshadow an overall good earnings report? Well, i think it confused people into buying the stock without being able to do any work. It made it feel like that. Wait a second. The sales were good, the the earnings were good, let’s go, buy the stock and what they left out.

It’S. Not that and remember i mean it jumped up it’s not down that bit, but what they forgot is that intel has a very checkered story. Uh and the checkered has to do with the fact that they can’t manufacture, as well as they used to um that’s that’s. The real rap against them and that’s. One of the reasons why amd, which everyone thought was going to do bad when pat gelsinger was appointed. The head of intel is actually up today in a very negative day and if you want to know what’s the key stock for this market, it is amd because if that stock turns today, then you’re going to get a turn in the market. If it doesn’t, then this market’s going lower. So another earnings report that we got last night was from ibm and ibm posted earnings that didn’t satisfy investors. The company is down about six percent in the past year, what’s your advice for investors wondering what to do with this position. Well, i think that there, you know there’s no way else is going to downgrade at this point uh, but the quarter was weak and while it does have covers the dividend right now and we’ll cover the dividend next year, maybe even the year after that, the free Cash flow was just it wasn’t good, uh, it wasn’t as good as we thought. It’S still good. This company generates a huge amount of cash, but the stock is being correct and uh there’s a belief that, at the end of the third quarter, when they missed a lot of contracts that they would then fall in the place of the fourth quarter.

Now the contracts that weren’t signed in the third quarter were put in the fourth quarter, but the fourth quarter itself, uh away from those contracts, was quite poor and that’s. One reason why again, i find this is a very tough stock, though, and by the way i, like you um, i think you can hold it for when it splits. I, like the uh division that martin schroeder is going to get into because i that’s a service business. I like service businesses um. I would like to see more of uh jim whitehurst from red hat, because that’s did well. That was up 19, so i’m saying you kind. You know i’m, not telling you to sell it i’m, not telling you so last night on mad money. You sat down with chris beale ceo of wm holdings i’m, really interested in this interview, because this company is yet another stack hitting the markets i’m wondering if you think that this company is something to keep an eye on or if we really should wait. Until we see more cannabis legalization well, i i think the company has come on has created a turnkey solution if you want to be in the uh marijuana business and that’s, really terrific, because there’s lots of different regulations that the gentleman that was on was is a Lawyer he worked at uh at davis polk and he worked at covington and he knows the thicket of what you have to do in order not to get your license revoked.

So i i. I think that the company is basically a um it’s kind of like a home depot for for these couple uh. You know maybe no it’s, like it’s tough to describe because marijuana is so, unlike almost everything else, it’s sold, but boy uh. They have a lot of good customers and they’re doing quite well uh and i tried to look at the site and order stuff, my daughter’s in town whatever and uh. Now you can. I mean you can’t order anything and you can find out that you got the stores in new jersey. There’S got this yelp function, whether they’re, good or not, but uh. If you want um to go to that site to buy, i suggest that you really it’s really a site for uh b2b, not be the same jim. Since we talked about gamestop earlier this week on our action alerts plus daily rundown show. I want to bring it over to the street live. I have just been watching this stock climb. I mean we both have and it’s now up 896 in the past year and wall street’s bets investors are just ever bullish. Is this a rude awakening for those on wall street to realize that retail investors can really stand up to the old guard? Well, what’s, going on there right now is. Is that um? Some of these younger investors are actually signing up for loyalty cards, boosting that program. Uh, the company should do okay and there’s a shortage in hardware.

I saw that from best buy where you, if you wanted to get xbox, you want to get playstation and they probably get some allocation. I don’t know what it is. They’Ve got that new fellow on the board, who’s founded chewy uh per personally. I think i don’t like to bet on short squeezes, because i don’t know where they’re gon na end it’s, something that i don’t control. But this is most definitely short squeeze because at this price, you’re paying up for a company that is historically done very poorly. So uh, i respect what the robin hood, whoever it is married men whatever i respect what they’re doing and it’s legal, what they’re doing from what i can tell, but i think they have to remember that at one point you got to take profits, uh it’s too Risky and they don’t uh, agree with that, and they just think it’s uh, you own it until i don’t know until it goes to 100. I mean i don’t know what the play is so jim in your eyes. We know that this is short squeeze right now, but let’s let’s look into the future. What would it take for you to say that this is more and that the company really can turn around well if they raised a billion dollars in the equity market, they just sold the shares to make that much um. I would feel so much better because then they can reinvent themselves.

It would be very hard to get capital when they were three five, six, seven, eight nine, but here they can raise very easily very easily they can sell. I don’t know 25 million shares right now on the line and uh. Then they take that money and do what they want. Already 16 million have traded, and so i think, that’s the best bet for what they need to do all right, and i think that is the perfect note to end our show for the week jim. Thank you for joining um guys, thank you for tuning in and we are now heading over to our action alerts plus daily rundown show so join us over there on actionalertsplus.

What do you think?

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