Jim Cramer believes the recent stock movements in Apple, Chipotle, and Eli Lilly are incomprehensible.
- On Wednesday, Jim Cramer of CNBC advised investors that not all market fluctuations are justified.
- He stated that every day on this front serves as a reminder that it's not safe to assume that all moves on the screen are the result of any intelligence, particularly during earnings season when the market is flooded with foolishness.
On Wednesday, CNBC's Jim Cramer emphasized that not all market fluctuations are rational, citing recent actions that he believes demonstrate flawed logic.
Remember that not all moves on your screen are the result of intelligence, especially during earnings season when the market is flooded with irrational behavior. Therefore, when you encounter an action that doesn't make sense, consider the possibility of genuine stupidity, especially when it's causing stocks to decline despite their potential for growth.
Cramer believes that Wall Street's treatment of Apple stock has been unwise. He stated that traders criticized the tech giant's lack of innovation but changed their tune once the Vision Pro was released. Cramer has always believed that investors should own Apple and saw the value of the new virtual reality product before its official release.
Cramer argued that investors should not be cautious about investing in just because peers in the fast food sector like and recently reported poor earnings. The Mexican food chain's Tuesday report exceeded expectations, with a 7.4% increase in restaurant traffic.
Eli Lilly has announced that its popular drug for weight loss and diabetes may also treat liver ailments. The pharmaceutical giant said the drug showed promising trial results as a treatment for a serious form of liver disease known as metabolic dysfunction-associated steatohepatitis, or MASH. The condition doesn't currently have a cure or specific medicine to treat it. The company's stock slowly declined during Tuesday's session, but finished Wednesday up 2.89%.
The possibility of using a new drug to treat serious liver disease could significantly increase the number of people who could benefit from it, potentially reaching 15 million individuals in the U.S. alone, according to Cramer. This is particularly impressive given that there are currently no effective treatments for this often fatal condition.
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