Renowned financial expert Jim Cramer, of CNBC, expressed his skepticism towards investing in Archer Aviation Inc. (ACHR) due to what he perceives as the company’s lack of “earnings power.” He emphasized, “There’s so many good stocks right now, we don’t need that.”
Archer Aviation recently revealed disappointing fourth-quarter financial figures, reporting losses of 34 cents per share. This outcome fell short of analysts’ expectations by 21.43% and marked a 12.82% rise in losses compared to the same period last year. The company anticipates non-GAAP operating expenses ranging from $75 million to $95 million for the first quarter of 2024.
Cramer likened the situation to a Greyhound bus that has departed without him, as he exercised caution with entities such as Robinhood Markets, Inc. (HOOD), highlighting his aversion to purchasing stocks that have doubled in value rapidly.
On the other hand, Robinhood Markets introduced the Robinhood Gold Card during its inaugural keynote event, shedding light on the company’s strategic direction as articulated by co-founder and CEO Vlad Tenev.
In a contrasting sentiment, Cramer advised against selling shares of Cummins Inc. (CMI), a stance in line with JPMorgan analyst Tami Zakaria’s decision to maintain a rating of Underweight for Cummins while adjusting the price target from $245 to $275 on March 25.
However, amidst the cautious outlook, Cramer expressed a positive stance on Crown Castle Inc. (CCI) stock, considering a purchase opportunity at current levels given its 6% yield. “I think it’s a good idea, and I haven’t felt that way about Crown Castle in ages,” Cramer remarked.
On a different note, Crown Castle reported robust fourth-quarter results on January 24, exceeding expectations.
Market Performance:
- Archer Aviation shares dipped 1% to $4.74 at the close of trading on Wednesday.
- Robinhood shares surged 3.8% to end at $20.01.
- Cummins shares advanced 1% to settle at $294.69 by the close of Wednesday’s session.
- Crown Castle shares climbed 3.6% to reach $105.59 by the end of Wednesday’s trading session.
Read Next: Top 3 Consumer Stocks That May Rocket Higher This Quarter
Image: Shutterstock