Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Jim Cramer Says 'Better Than Feared' Is The Name Of The Game: Will Amazon And Apple Pass The Test?

Published 27/07/2022, 17:32
Updated 27/07/2022, 18:10
© Reuters.  Jim Cramer Says 'Better Than Feared' Is The Name Of The Game: Will Amazon And Apple Pass The Test?

© Reuters. Jim Cramer Says 'Better Than Feared' Is The Name Of The Game: Will Amazon And Apple Pass The Test?

Alphabet (NASDAQ:GOOGL) Inc. (NASDAQ: GOOG) and Microsoft Corp . (NASDAQ: NASDAQ:MSFT) shares are trading higher Wednesday despite reporting numbers that came in below analyst estimates.

With Amazon.com Inc. (NASDAQ: NASDAQ:AMZN) and Apple Inc. (NASDAQ: NASDAQ:AAPL) set to report this week, Jim Cramer believes a theme is starting to take shape around earnings season.

"Better than feared is working," Cramer said Wednesday on CNBC's "Squawk On The Street."

What To Know: Alphabet traded lower with Snap Inc . (NYSE: NYSE:SNAP) last week after the company reported worse-than-expected results and held back guidance, citing uncertainties related to the operating environment.

Snap's results cast doubt on the earnings season.

However, despite missing on the top and bottom line, Alphabet shares jumped on the report as the company's results were better than feared. Microsoft stock took a bit longer to find its footing, but after falling on its earnings release, Microsoft shares surged following strong guidance on the conference call.

See Also: Google Parent Alphabet's Search Outperformance, YouTube Shorts Momentum, AI-Focus: Munster's Analysis Of Q2 Results

Why It Matters: Cramer sees a trend beginning to form.

"I think that Amazon could actually be similar to what we see [with Alphabet and Microsoft]. I actually think that Apple could be similar to what we see," Cramer said.

A lot of people are concerned that Amazon has lost its edge, but Cramer isn't convinced.

"We've come down enough that if we hear anything that's better than feared, we bounce," Cramer said.

However, if results are worse than feared, the pair of mega caps can still get crushed, Cramer said: "But better than feared is working."

Amazon and Apple are set to report second-quarter results after the market close on Thursday. Amazon is expected to earn 14 cents per share on quarterly revenue of $119.12 billion, according to data from Benzinga Pro. Analysts expect Apple to report quarterly earnings of $1.16 per share on revenue of $82.6 billion.

AMZN, AAPL Price Action: At press time, Amazon was up 4.34% at $119.80 and Apple was up 1.61% at $154.04.

Photos: courtesy of Amazon & Apple.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.