CNBCs Jim Cramer On Thursday, investors were reminded to carefully process earnings and other company news before deciding to deposit or buy a stock.
“Why can’t we just take the income at face value and decide immediately whether something is good or bad? Because it takes time to evaluate new information,” said the “Bad money“said the host.” Just like anything else, if you are rushing to judgment in the stock market, you will make mistakes. Therefore, you cannot rely on the first blush to determine how a company is doing. “
“When you’ve bothered to listen CEO Frank Slootman on last night’s showYou would have been a buyer, not a seller, because it was a brilliant quarter, “Cramer said, noting that Snowflake shares ended up rising more than 4% on Thursday after the session started.
“The second flush,” said Cramer, turned out to be “much more accurate”.
Beyond meat ‘Thursday’s stock movement also shows the need for due diligence before making an investment decision, Cramer said. The plant-based meat producer’s shares fell 12.5% to trade at $ 142.61 per share.
However, there is more to the stock movement than just these positive business developments, he said. In particular, Cramer told Reddit’s WallStreetBets forum – known for influencing meme stocks like GameStop – seems to play a role.
“They’re just trying to break the shorts here because 25% of the float is short. The action doesn’t say anything about the basics, although I predict … more pain for the shorts,” Cramer said.