Shares of Target experienced a significant 12% surge following the retail chain’s announcement of earnings that surpassed expectations. Jim Cramer remarked on Target’s notably low inventories.
Despite a third consecutive quarter of decline in comparable store sales, Target managed to increase its profits and margins, a feat Cramer attributed to leverage. He expressed enthusiasm, stating he had been anticipating such a development for quite some time and deemed it very positive news for the upcoming two quarters.
Conversely, Advanced Micro Devices witnessed a nearly 2% decline in shares on Tuesday. This drop followed a report from Bloomberg News late Monday, revealing that the U.S. government had informed AMD that its AI chips intended for the Chinese market necessitated a license to comply with the export controls of the Biden administration.
Cramer suggested a potential buying opportunity if the stock’s price decreases. He also noted that Cramer’s Charitable Trust, the portfolio utilized by the CNBC Investing Club, holds shares of Nvidia, the primary manufacturer of AI chips.
Gitlab faced a substantial setback as its shares plummeted by more than 17% after the issuance of a subdued revenue forecast by the software company. Despite experiencing a 37% increase in revenue for the recently concluded fiscal year, Gitlab’s full-year sales guidance indicates growth in the mid-20% range, a factor that Cramer emphasized as severely impacting the stock’s performance.
Tesla encountered a nearly 5% decline in its stock value amid reports of weak shipment numbers in China and a temporary cessation of operations at its German factory. Year to date, Tesla shares have fallen by over 27%. Cramer, recalling his earlier call in 2024 for Tesla’s removal from the group of so-called Magnificent Seven stocks, described the situation as “magnificent”.
In contrast, AeroVironment observed a remarkable 28% surge in shares following the drone manufacturer’s announcement of earnings per share that nearly doubled estimates and a promising forecast. Cramer attributed the surge to the company’s ability to secure orders.
