LIVE: Jim Cramer on AT&T, Amazon, Cloud Stocks, Home Depot
Jim Cramer discusses Amazon (AMZN) – Get a report reported discussions with MGM Holdings (MGM) – Get a report, AT&T (T) – Get a report dividend, Home Depot (High Definition) – Get a report and the markets live at 10:30 am ET in the video below:
Jim Cramer has something to say about AT&T
“Nobody talks about dividend! Cramer exclaimed in the first sentence of his Real money Monday afternoon column. “Monday morning, in what many media outlets are calling a transformational deal, AT&T (T) spin off its Time Warner multimedia resources with Discovery (DISK) to create an entertainment colossus, while getting $ 43 billion, while its shareholders will get 71% of the new company. Comments on the merger dominated the day’s discussions. It was almost entirely positive, a tremendous result for all. “
“I don’t call it a transformational deal. I call it the unwinding of a ridiculously stupid deal, the $ 85 billion acquisition of Time Warner, a deal that closed less than three years ago.” , he continued.
“For me, it’s impossible to talk about this deal with a straight face. If you go through all the reasons they made this deal in the first place, it’s all sort of gobbledegook about how the AT & T’s direct and mainstream distribution strengths merge with Time Warner’s creative talent. As AT & T CEO Randall Stephenson said, “We will bring a fresh take on how the industry media and entertainment works for consumers, content creators and advertisers, ”he wrote.
What do cloud software stocks look like?
“Cloud software stocks have pulled back sharply from their highs, down 19% on average, but that doesn’t mean they’re worth buying. Cramer has plunged into those software as a service stocks. to assess the damage and see if there is more pain to come, “wrote The streets Scott Rutt in his Crazy money to summarize.
“The losses in this group have been mind-blowing,” Cramer said. Of the 75 names he looked at, the average drops were 37%, 26 racking up losses above 40% and 15 of them had more than 50% drops. But despite these losses, the fundamentals remain strong. This is why he said the “Rule of 40” always applies when evaluating cloud stocks, “he continued. “The Rule of 40 states that a company’s revenue growth plus its EBITDA margin must be greater than 40. This gives a company two ways to earn. It can have a lot of growth with low margins or margins. high with less growth. If a cloud stock has no growth or margins, then investors need to be clear. “
Hear what Jim Cramer only says to members of his Action Alerts PLUS Investor Club in Tuesday’s Daily Rundown.