CNBC’s Jim Cramer said Friday that many tech companies that have gone public in recent years are beginning to realize their mistakes, and he warned investors not to take their dollars elsewhere.
“The companies here in San Francisco are just beginning to realize that they have over-expanded, and in many cases, some of these companies shouldn’t have gone public,” said the Mad Money host.
“Especially for most of the pseudo-corporations that have been invented in the last three years, I say they should never have been disclosed to the public, but in many cases they shouldn’t exist. Cruel? Perhaps, but I am trying to help you preserve your capital, “He said.
Kramer’s comments come after he spent a week in San Francisco interviewing tech leaders. He said Thursday that many have told him that layoffs are imminent across Silicon Valley and that some companies are planning to move out of California.
Looking ahead, Cramer said he is watching the Fed’s two-day meeting on Tuesday and Wednesday that will reveal the size of the next rate hike.
“If they act more aggressively, will the market welcome this news, or will we see another sell-off? We will have to wait and see,” he said.
Kramer also reviewed the earnings list and investor meetings next week. All profit and revenue estimates are provided by FactSet.
Monday: inspiration
- Announcing Q4 2022 earnings after closing; Conference call at 5 p.m. ET
- Expected EPS: $1.37
- Expected revenue: $11.61 billion
Kramer said he expects a conference call to the strength of the conference call. If the stock goes down after that, he said, “we know the technology has sunk and the depths haven’t reached yet.”
Tuesday: Confirm, DuPont
Opti
Cramer said the meeting should shed some light on the state of buy now, and pay later.
DuPont
“F [CEO Ed Breen] We’re going into a recession, Kramer says, I want to know how long.”
Thursday: Kroger, Adobe, Honeywell
Kroger
- Announcing Q1 2022 earnings at a later date; Conference call at 10 a.m. ET
- Expected EPS: $1.29
- Expected revenue is $43.85 billion
Kramer said investors should not bet against the grocery company despite rising food price inflation.
Adobe
- Announcing Q2 2022 earnings after closing; Conference call at 5 p.m. ET
- Expected EPS: $3.31
- Expected revenue: $4.35 billion
“Adobe is a great long-term growth story, so if it takes a hit you might want to buy some on weakness, but don’t count on it to change anytime soon,” he said.
Honeywell
Kramer said he has no plans to buy Honeywell shares for the Charitable Trust, but he will consider doing so if the stock goes down.
Friday: two cents
“I want to hear if the company continues its late tradition [former CEO] Michael Nieddorf, the man who created this healthcare center,” Kramer said.
Disclosure: The Kramer Charitable Fund owns stock in Honeywell.
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