Dow futures tumble as global stocks retreat, with Wall Street on the verge of its biggest monthly drop since March, as tech earnings fail to offset threat of a surge in coronavirus infections .
In the latest episode of Mad Money, Jim Cramer said that if Facebook (FB) – Get the report, Amazon (AMZN) – Get the report, Apple (AAPL) – Get the report, Netflix (NFLX) – Get the report and alphabet (GOOGL) – Get the report are expensive by traditional metrics when investors look at metrics that really matter, it’s ridiculous to do not invest in them.
TheStreet’s Katherine Ross and Cramer discussed this week’s purchase of ServiceNow shares, developments with Ford, and tech earnings.
ServiceNow Stock: buy or sell?
Several analysts have raised their price targets on ServiceNow shares (NOW) – Get the report after the workflow software company beat Wall Street earnings expectations.
Shares of the Santa Clara, Calif.-Based company rose 2.7% to $ 497.10 on Thursday.
Cramer said he would buy ServiceNow shares after the profits.
Ford Stock: buy or sell?
Ford Motor Co. (F) – Get the report Stocks jumped to an eight-month high on Thursday after the automaker broke Wall Street’s forecast for third-quarter earnings thanks in part to the strongest North American profit margins in four years.
The automaker said adjusted profit for the three months ending in September was pegged at 65 cents a share, and revenue rose 10.5% to $ 37.5 billion.
Cramer said the pandemic “was a saving grace” for Ford. He believes Ford will make money under CEO Jim Farley’s leadership as the stock rises.
How to approach technological gains
Stocks ended higher on Thursday as economic growth in the United States was above estimates and jobless claims declined.
The rebound came after the S&P 500 fell 3.5% in the previous session, the biggest loss since June 11. And investors are waiting for earnings reports from some of America’s biggest tech companies.
Cramer advised investors to “do nothing” after the tech earnings landslide. He said investors should buy Apple Inc. (AAPL) – Get the report stock but do not exchange it, and not recommended to buy Alphabet Inc. (GOOGL) – Get the report stock now. He also added that Facebook Inc. (FB) – Get the report will be a “fabulous” stock.
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