Cramer: consider buying the dip in beaten down tech stocks now
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Jun 8, 2022
Names he likes include Broadcom, ServiceNow, and Salesforce Inc.
The tech-heavy Nasdaq composite closed nearly 1.0% up on Tuesday.
It’s time to consider buying the dip in some of the beaten down, high quality tech names because the Target news this morning suggests inflation is peaking, says the Mad Money host Jim Cramer.
Target to lower prices to get rid of excess inventory
On Tuesday, retail behemoth Target Corporation said it will resort to selling unwanted items at deep discounts to “right size” its inventory levels. Explaining what that means, Cramer said:
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
When we see supply gluts developing, it means price cuts are on the way, it means inflation is coming down, it means Fed has a better chance of engineering that soft landing we so hope for if we’re bullish.
Target’s announcement also pushed the 10-year below 3.0% on Tuesday. Signs of inflation peaking are also popping up in semiconductors, shipping, and fertilizers.
Cramer endorses three tech stocks in particular
The development, as per Cramer, might create some room for the U.S. central bank to be a bit less aggressive. Consequently, a few of the tech stocks will become attractive again, he added.
The real greenlight here is on the high quality, beaten down tech stocks. They might deserve a big of a resurgence if they are profitable, if they have buybacks, and dividends; names like Broadcom, ServiceNow, and Salesforce.
The tech-heavy Nasdaq composite closed nearly 1.0% up on the Target news. Cramer, however, warned the CPI print later this week could just as easily reverse the aforementioned setup.
75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Stocks & Shares