Tech stocks’ Thursday selloff may not last long, says Jim Cramer

CNBC’s Jim Cramer summed up the market Thursday, praising the recent quarter, saying that even if tech stocks take a hit, they may not be down for long. apple and Amazon.

“After a strong quarter and great guidance from Apple and a great quarter and great guidance from Amazon, I wouldn’t be surprised to see that money come back into the technology space,” he said. “Tech will be back in the saddle tomorrow.”

Stocks fell during the session as investors analyzed Big Tech’s quarterly report. of S&P500 Although it decreased by 0.99%, Dow Jones Industrial Average 0.23% decline, dominated by high-tech industries Nasdaq Composite It fell 1.58%.

Part of the weakness of this day is metaKramer said in the company’s earnings report. He said he thought Facebook’s parent company had a strong performance, but said investors were wary of the company’s plans to increase spending on artificial intelligence.

Meta said it expects capital spending to be in the range of $70 billion to $72 billion, up from its previous outlook of $66 billion to $72 billion. The stock fell more than 11%, its biggest one-day loss since 2022.

Cramer suggested that Meta’s weakness is spreading to other related stocks in the group, including semiconductor giants. Nvidia — ended the day down 2%.

He compared Meta’s quarter to that of Apple and Amazon, which released earnings after the close on Thursday and whose shares soared in after-hours trading.

Cramer said he was pleased with Apple’s earnings outlook and CEO Tim Cook’s assertion that he expects China to return to growth this quarter.

Amazon reported strong sales and bottom line growth, Cramer added, and also provided stronger guidance. Wall Street was primarily focused on the performance of the company’s web services division, he said, and AWS managed to beat expectations with revenue growth accelerating from 17.5% to 20.2%.

“Meta may be spending like a drunken sailor, but Amazon is doing well, and efficiently racking up big numbers in the process,” he said.

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Disclaimer CNBC Investing Club Charitable Trust owns shares in Meta, Nvidia, Amazon, and Apple.