Disney’s stock experienced a nearly 5% jump on Thursday following the release of its earnings report. CNBC’s Jim Cramer weighed in on the market move and shared some common mistakes investors make during periods of significant market volatility.
Cramer highlighted the importance of not making major investment decisions based on a single data point, especially when it aligns closely with estimates. He advised investors to exercise caution and use limit orders instead of market orders to avoid overpaying for stocks. According to Cramer, market orders leave investors vulnerable to the whims of an unpredictable market.
The CNBC commentator also analyzed Disney’s performance, labeling it a “textbook winner.” He explained that stocks that are able to rise in the face of a wave of selling are usually considered valuable. Cramer attributed Disney’s success to CEO Bob Iger’s confidence, even amidst a mixed earnings report.
Cramer emphasized the fleeting nature of market moves driven by new data points and cautioned against relying on them to determine the prevailing trend of the market. He believes that the current trend is a sell-off of big-cap tech stocks. However, Cramer added that such moves can also present opportunities to identify new winners.
In addition to his analysis, Cramer recommended downloading his free guide, “Jim Cramer’s Guide to Investing,” to help individuals build long-term wealth and make smarter investment decisions. He also encouraged readers to join the CNBC Investing Club to stay updated on his market moves.
It is worth noting that the CNBC Investing Club Charitable Trust holds shares of Disney, as stated in the disclaimer.
Overall, Cramer’s insights provide valuable guidance for investors during periods of market volatility, highlighting the significance of careful decision-making and the potential opportunities presented by market fluctuations.