Cramer's Morning Take: Meta 4/25/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club Morning Meeting.

Jeff Marks (0:08)

I think the brown shoots that you have been pointing to, well, they surfaced today with the GDP number that was much softer than expected and increasingly as a concern, too, the price index was much hotter than expected.

Jim Cramer (0:22)

So what we don't have, what we were hoping for, and this is something my friend Michael Semblos put out yesterday, JP Morgan, we were hoping that we would have a disinflation growth spur. Instead, we're having an inflation lack of growth spur, that's the brown shoots. So it means that the Fed, as my friend Matt Horwim was saying, the Fed needs help. You can't just be the Fed because the Fed's raised rates and it hasn't tamped inflation.

So what you have is a situation where people say, you know what, I don't like the tenure. The tenure is the barometer for everything we just said. So I mean, whatever the tenure says is in charge, that's one of the reasons why I said last time on the show, I don't like the market because I don't like to have a bond in charge of my stocks.

Jeff Marks (1:01)

Right, and then you have the 10-year selling golf, meaning up in yields, in reaction to it. Some concerns about stagflation. We'll have another auction later today and then of course, PCE deflator tomorrow.

Jim Cramer (1:13)

The seven year's not that attractive.

Jeff Marks (1:15)

Yeah.

Jim Cramer (1:16)

I don't think it's a great piece of paper because you don't want to lock yourself in at that low rate.

Jeff Marks (1:20)

Meanwhile, we are seeing a lot of disappointing reactions to earnings. There are some pockets of green, but I think meta kind of the poster child of today.

Jim Cramer (1:29)

But the quarter...

Jeff Marks (1:30)

Yeah, of course, because the quarter itself is actually pretty good. You know, revenue beat 27% year-over-year pretty darn good.

Jim Cramer (1:37)

But then it lowered the next quarter's growth.

Jeff Marks (1:38)

Right, and earnings beat expectations, but the revenue guide, the midpoint was lighter than expectations. The stock was priced for a blowout of 40%.

Jim Cramer (1:46)

Yeah, now it was down 75 at one point. It's been a comeback. I don't trust the comeback, just so people know.

However, we downgraded the stock at 490 We sold some stock.

Jeff Marks (1:54)

We sold some stock at 490, which was a disciplined sale because it was such a large percent of the portfolio. And that's what we do. When a stock outperforms, becomes a big weighting, we trim unemotionally 490 Right. Good sale.

Jim Cramer (2:08)

And that was yesterday when I gave that lesson about discipline. This is from Karen Cramer. Discipline trumps conviction. When we work together, I would always be very excited about a stock. And the stock would go up huge and she would be congratulating me. Then she would tell me to go get her a soft pretzel and a diet coke and come back. She would cut the position by a quarter. Why? Well, because discipline trumps conviction. I'm conviction and she's disciplined. Well, I've learned to amalgamate and we're disciplined and that was the right thing to do. Now, I will say this.

I am anxious to buy back that 490, but there is no short-term fix to meta because he told you.

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